Northern Potato Loss Adjustment Standards Handbook

United States Department of Agriculture Federal Crop Insurance Corporation
Product Development Division FCIC 25361 (5-98)
NORTHERN POTATO LOSS ADJUSTMENT STANDARDS HANDBOOK
1998 and Succeeding Crop Years
MAY 1998
FCIC-25361 NORTHERN POTATO LOSS ADJUSTMENT STANDARDS HANDBOOK SUMMARY OF CHANGES/CONTROL CHART
The Northern Potato Crop Provisions (98-184) and various endorsements are new for the 1998 and succeeding crop years. The crop provisions and endorsements obsoletes all information pertaining to Northern Potatoes found in FCIC-30360, Potato Handbook, issued June 14, 1996.
CONTROL CHART FOR: NORTHERN POTATO LOSS ADJUSTMENT STANDARDS HANDBOOK SC Page(s) Remove Current Index TC Page(s) Text Page(s) Exhibit(s) Date Directive Number
Removes all instructions for Northern potatoes in FCIC-30360 and replaces with FCIC-25361 1-2 1-2 1-70 1(71-74) 5-98 FCIC-25361
SC 1
FCIC-25361
MAY 1998
(RESERVED)
SC 2
MAY 1998 NORTHERN POTATO HANDBOOK TABLE OF CONTENTS PART 1 GENERAL
FCIC-25361
Page 1 2 3 4 5 6 7 8 9 10 Purpose . . . . . . . . . . . . . . . . . Special Instructions . . . . . . . . . Operating Policy . . . . . . . . . . . Abbreviations . . . . . . . . . . . . . Forms and Procedures . . . . . . . Definitions . . . . . . . . . . . . . . . Responsibilities . . . . . . . . . . . . Insurance Contract Information (Reserved) . . . . . . . . . . . . . . . (Reserved) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 .1 .1 .2 .2 .2 .4 .5 10 10
PART 2 POTATO APPRAISALS 11 General Appraisal Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Sample Selection Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Appraisal Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A Appraisal Method - From Emergence to Maturity . . . . . . . . . . . . . . . . B Appraisal After Maturity (Weight Method) . . . . . . . . . . . . . . . . . . . . . C Field Inspection Requirements If Tuber Rot Condition Exists . . . . . . . . . D Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E Special Instructions for Appraised Freeze Damaged Potatoes . . . . . . . . F Disposition of Potatoes With Major Freeze Damage . . . . . . . . . . . . . . 14 Adjustments to Potato Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B Adjustments for Tuber Rot Only; Quality Deficiencies Covered Under Quality Endorsement(s) Only; or a Combination of Tuber Rot and Quality Deficiencies Covered Under Quality Endorsement(s) . . . . . . . . C Adjustments for a Combination of Tuber Rot and Freeze Damage; or a Combination of Tuber Rot, Freeze Damage and Quality Deficiencies Covered Under Quality Endorsement(s) . . . . . . . . . . . . . . D Adjustments for Freeze Damage Only; or a Combination of Freeze Damage and Quality Deficiencies Covered Under Quality Endorsement(s) . . . . . . . . E Tuber Rot Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F Freeze Damage Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G Adjusting Potatoes Insured Under the Certified Seed Endorsement . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 17 17 18 19 20 20 23 23 23
. . 24 . . 27 . . . . . . . . 30 33 34 34
TC 1
FCIC-25361 NORTHERN POTATO HANDBOOK TABLE OF CONTENTS (continued) 15 16 17 18 19 Appraisal Worksheet Entries and Completion Standards Appraisal Calculation Standards . . . . . . . . . . . . . . . . Appraisal Modifications and Deviation Standards . . . . (RESERVED) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (RESERVED) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 3 POTATO CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MAY 1998
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39 45 45 45 45
20 Claim Form Entries And Completion Standards . . . . . . . . . . . . . . . . . . . . . . . . 47 EXHIBITS 1 Flow Charts for All Northern Potato Coverage Combinations . . . . . . . . . . . . . . 71
TC 2
UNITED STATES DEPARTMENT OF AGRICULTURE WASHINGTON D.C. 20250 FEDERAL CROP INSURANCE HANDBOOK SUBJECT: NORTHERN POTATO LOSS ADJUSTMENT STANDARDS HANDBOOK 1998 AND SUCCEEDING CROP YEARS DATE: May 1, 1998 OPI: Product Development Division NUMBER: 25361
APPROVED: R. E. Waggoner for Tim B. Witt /S/
Deputy Administrator, Research and Development Division
PART 1 GENERAL 1 PURPOSE This handbook identifies the crop-specific standards (requirements) for adjusting Multiple Peril Crop Insurance (MPCI) Northern potato losses in a uniform and timely manner. These standards, which include crop appraisal methods and claims completion instructions, supplement the general (not crop-specific) standards for loss adjustment identified in the FCIC-25010, Loss Adjustment Manual (LAM). 2 SPECIAL INSTRUCTIONS This is the initial loss adjustment standard’s handbook for Northern potatoes. The states and counties considered to be under the Northern Potato Crop Insurance Provisions are: Alaska; ONLY Humboldt, Modoc and Siskiyou Counties in California; Colorado; Connecticut; Idaho; Indiana; Iowa; Maine; Massachusetts; Michigan; Minnesota; Montana; Nebraska; Nevada; New York; North Dakota; Ohio; Oregon; Pennsylvania; Rhode Island; South Dakota; Utah; Washington; Wisconsin; and Wyoming. This standards handbook remains in effect until superseded. The issuance of an entire handbook will replace a previous handbook; handbook amendments or bulletins may supersede parts of a handbook. 3 OPERATING POLICY A Insurance Providers. Insurance providers must use this handbook as the basis for developing any appropriate loss adjustment procedures and training consistent with the standards in this handbook. Insurance providers may find it necessary to provide additional internal guidelines or procedures for adjusting losses on their insurance contracts. Any additional guidelines or procedures will require Federal Crop Insurance Corporation (FCIC) approval unless otherwise provided in writing by FCIC. Specific Entry Standards. These standards are entry-specific to generic forms. Insurance providers’ forms and procedures are to comply with the FCIC standards in at least an equivalent manner.
B
FCIC-25361 4 ABBREVIATIONS APH CAT CIH CSREES FCIC FSA GLAS LAM MPCI RMA RSO USDA 5
MAY 1998
Actual Production History Catastrophic Risk Protection Crop Insurance Handbook Cooperative State Research, Education, and Extension Service Federal Crop Insurance Corporation Farm Service Agency General Loss Adjustment Standards Loss Adjustment Manual (also GLAS) Multiple Peril Crop Insurance Risk Management Agency Regional Service Office United States Department of Agriculture
FORMS AND PROCEDURES A Insurance Providers. Insurance providers are to use FCIC-approved standard procedures in developing procedures, training, forms, and completion instructions. All procedures, forms, and completion instructions must be submitted for approval in accordance with the FCIC-24030, Submissions Standards Handbook. General Forms and Manuals. General forms and manuals (or their equivalent) necessary for loss adjustment are identified in the LAM. Distribution. The following is the minimum distribution of forms completed by the adjuster for the loss adjustment inspection: (1) (2) Original copy to the office designated by the insurance provider to retain original documents relative to the policyholder’s file. One legible copy to insured.
B C
6
DEFINITIONS A B General. Terms and definitions that are general (not crop specific) to loss adjustment are identified in the LAM. Specific. Terms and definitions specific to potato loss adjustment and this handbook, which are not defined in this section, are identified as they appear in the text. Combination Adjustment Factor The results of combining two or more determined quality factors into one factor which is applied to the production to count.
2
MAY 1998 Commingled
FCIC-25361 Definition applies ONLY to commingled production when the Storage Coverage Endorsement is in effect. When production from separate insurance units, basic or optional, is commingled in storage, the production to count for each unit will be allocated prorata based on the production placed in storage from each unit. Such allocation will be allowed ONLY if verifiable records of production placed in storage are available by unit. Refer to the Storage Coverage Endorsement for further information. Disposal of production by insured, or a person acting for insured, without receiving any value for it. Any disposition of the crop including but not limited to sale or discard. Any potato acreage harvested earlier than 45 days prior to the calendar date for the end of the insurance period, unless otherwise specified in the Special Provisions. Defects which can be detected externally. However, cutting may be required to determine the extent of the injury. See the United States Standards for Grades of Potatoes for classification of external defects. Potatoes are considered to be harvested when they are lifted from within the soil to the soil surface. Defects which cannot be detected without cutting the potato. See the United States Standards for Grades of Potatoes for classification of internal defects. This disease is a serious problem caused by Phytophthora Infestans in potato growing areas where cool, humid weather is common. The fungus can infect leaves, stems and tubers. The value of production when the cost to transport the potatoes to a market within a reasonable distance outside the insured’s local marketing area (distant market) is equal to or exceeds the value in the distant market.
Discard
Disposed Early Harvest
External Defects
Harvest
Internal Defects
Late Blight
Net Zero Value
3
FCIC-25361
MAY 1998 Additional cost means: Cost in excess of costs to transport to the local marketing area. Percentage Factor Definition applies ONLY to the Quality and Processing Quality Endorsements. The historical average percentage of potatoes grading U. S. No. 2 (U. S. No. 1, if available in the county and elected by the insured), by type, determined from the insured’s records. If at least 4 continuous years of records are available, the percentage factor will be the simple average of the available records not to exceed 10 years. If less than four years of records are available, the percentage factor will be determined based on a combination of the insured’s records and the percentage factor contained in the Special Provisions.
7
RESPONSIBILITIES A FCIC Product Development Division (1) (2) (3) B Establish the minimum standards and guidelines for loss adjustment. Unless otherwise specified, review and approve all insurance provider loss adjustment procedures and forms prior to their use. Provide guidance and clarification, as needed, regarding these standards.
Insurance Providers (1) Comply with and implement the loss adjustment standards (requirements) established by FCIC, through procedures and forms approved by the Product Development Division, or as otherwise specified in writing by FCIC. Ensure that all documentation, determinations, and calculations are completed as specified in these standards. Provide input to FCIC regarding the loss adjustment standards. Advise FCIC of impending situations which may necessitate the development of procedures, forms, or calculations that are different from those identified in the standards issued by FCIC. Comply with other requirements issued by FCIC in the administration of contracts between the insurance provider and FCIC.
(2) (3) (4)
(5)
4
MAY 1998 (6)
FCIC-25361 Ensure that the required information is provided on the specific forms, printouts, or on a Special Report attached to the appropriate form, as specified in approved standards and procedures. In addition to the responsibilities identified in the LAM, determine whether contract provisions or requirements for Northern potatoes apply to the insured, and if so, whether they have been complied with by the insured. Insurance providers should promote their employees, adjusters, and insureds awareness of recommended production practices (such as the use and application of appropriate fungicides) for the control of organisms and conditions causing tuber rot by providing them materials from CSREES, local universities, and/or State Department of Agriculture representatives. Ensure that adjusters who perform grading of representative samples have attended and passed an USDA or state potato grading class, and are qualified to determine the grade of the potatoes.
(7)
(8)
(9)
8
INSURANCE CONTRACT INFORMATION A Insurability (1) The following policies, provisions and endorsements are available for Northern Potato Crop Insurance coverage: (a) (b) (c) (d) (e) Common Crop Insurance Policy (Basic Provisions). Northern Potato Crop Provisions attaches to the Basic Provisions. Catastrophic Risk Protection Endorsement. Northern Potato Quality Endorsement attaches to and is made part of the Northern Potato Crop Provisions. (Optional) Northern Potato Processing Quality Endorsement attaches to and is made part of the Northern Potato Crop Provisions and the Northern Potato Quality Endorsement. (Optional) Potato Certified Seed Endorsement attaches to and is made part of the Northern Potato Crop Provisions. NOTE: The (Optional) Quality Endorsement(s) DO NOT apply to Certified Seed potatoes. (g) The (Optional) Northern Potato Storage Coverage Endorsement attaches to and is made part of the Northern Potato Crop Provisions. If the Storage Coverage Endorsement is in effect, 5
(f)
FCIC-25361
MAY 1998 all insurable potatoes grown will be covered except production grown under a contract that requires the production to be delivered to a buyer within 3 days of harvest. (2) Insured Northern potatoes are all the potatoes in the county in which the insured has a share, which have been planted for harvest as certified seed stock or for human consumption (unless otherwise specified in the Special Provisions), and for which a premium rate is provided by the actuarial documents. The insurance provider is to determine that the insured has complied with all policy provisions of the insurance contract. Northern potato provisions which are to be considered in this determination include (but are not limited to): (a) (b) (c) Rotation requirements specified in the Special Provisions. Requirement to plant certified seed unless allowed otherwise by the actuarial documents. Noninsurability of damage to potatoes that occurs or becomes evident after the end of the insurance period, including, but not limited to damage that occurs in storage or becomes evident in storage unless the Storage Endorsement is in effect. Noninsurability in storage for potato production grown under a contract that requires the production to be delivered to a buyer within three days of harvest. Refer to the Storage Endorsement for further information. Noninsurability of potatoes (unless allowed by the Special Provisions or by written agreement) interplanted with another crop or planted into an established grass or legume.
(3)
(d)
(e)
(4)
Under the Northern Potato Crop Provisions, if the production from any acreage of the insured crop is not harvested, the price used to determine the insured’s indemnity will be 80 percent of the insured’s price election. If the Processing Quality Endorsement is in effect, and the processor contract requires the processor to purchase a stated amount of production, rather than all of the production from a stated number of acres, the insurable acreage will be determined by dividing the stated amount of production by the approved yield for the acreage. The number of acres insured under this endorsement will NOT exceed the actual number of acres planted to the potato types needed to fulfill the contract. If the Certified Seed Endorsement is in effect, all potatoes grown on insurable acreage and that are entered into the potato seed 6
(5)
(6)
MAY 1998
FCIC-25361 certification program administered by the state in which the seed is grown must be insured unless limited by section 5 of the endorsement.
B
Grade Inspection (1) The insurance provider must be given the opportunity to perform a grade inspection on the potatoes from any unit for which the insured has given notice of damage. An appraisal of not less than the production guarantee will apply for any acreage from which any production is disposed of without a grade inspection. Storage Coverage Endorsement in effect: (a) Representative samples of STORED damaged production that may qualify for quality adjustment must be obtained by the adjuster or a third party approved by the insurance provider prior to the sale or disposal of any lot of potatoes. Or, if production is not sold or disposed of within 60 days of the end of the insurance period, representative samples must be obtained within 60 days of the end of the insurance period. Damage that becomes evident more than 60 days after the potatoes have been placed in storage is not insurable.
(2)
(b) (3)
Storage Coverage Endorsement NOT in effect: (a) The extent of any insurable QUALITY LOSS must be determined within 21 days of the end of the insurance period based on representative samples obtained by the adjuster or a third party approved by the insurance provider no later than the time the potatoes are placed in storage, if the production is stored prior to sale, or the date the potatoes are delivered to a buyer, wholesaler, packer, broker, or other handler if production is not stored. Refer to subsection B(4) if potatoes will be transported. The 21 day period in the Northern Potato Crop Provisions is provided to allow ample time for grading and/or pricing of the representative samples that were obtained prior to storage or delivery. Adjustments to production will be made on the results of the grade inspection. Any additional damage that becomes evident after production is placed in storage will not be recognized.
(b)
(4)
If there is a possibility of damage occurring during transportation, representative samples should be obtained prior to transporting the potatoes. If the Quality Endorsement is in effect, the production to count for potatoes destroyed, stored or marketed without an acceptable grade inspection will be 100 percent of the gross weight for such potatoes.
(5)
7
FCIC-25361 (6)
MAY 1998 Representative sample selections for quality (grade) determinations must be made by a laboratory approved by the insurance provider, potato grader licensed or certified by the applicable state or the United States Department of Agriculture, in accordance with the United States Standards for Grades of Potatoes or an adjuster who has attended and passed a USDA or state potato grading class may make grade determinations. NOTE: When making a pre-inspection inquiry as to the availability of Federal/State inspectors, the insurance provider or adjuster is required to find out what size (weight) of representative samples is currently required by such inspectors in order to make the grade determinations. (7) Grade inspections must be completed in accordance with the U. S. Standards or State Marketing Orders as applicable OR the adjuster must VERIFY the insured has arranged for adequate and representative sampling and accurate grading by state/federal licensed inspectors at the delivery point for production unless as stated in subsection B(4) above, representative samples should be obtained prior to transporting. The adjuster is required to verify the actual grade of potatoes (from Federal/State inspection certificates) where the grower's settlement sheets do not exist or do not indicate the United States grade of the potatoes. NOTE: It is IMPERATIVE that all gross (field run) production is graded for the appropriate characteristics according to the crop provisions, endorsement(s) and the United States Grade Standards for potatoes. The characteristics found in the grading process must be documented. (i.e., percent freeze damage, percent soft rot or wet breakdown, percent other tuber rot conditions, percent by size, percent not grading U.S. No.2, etc.).
(8)
C D
Unit Division. See the insurance contract for unit provisions. Quality Adjustment Potato production that is eligible for quality adjustment will be adjusted as specified in the Northern Potato Crop Provisions, the Quality Endorsement, and Processing Quality Endorsement, as applicable. (1) Potato production covered under the Northern Potato Crop Provisions is eligible for quality adjustment if: (a) (b) The potatoes have freeze damage or tuber rot that is evident at, or prior to, the end of the insurance period; and A grade inspection is performed.
8
MAY 1998 (2) Quality Endorsement in effect: (a)
FCIC-25361
Coverage is extended to provide quality adjustment for acreage that contains potatoes that grade less than U. S. No. 2 due to internal defects, if such defects are in excess of the tolerance allowed for U. S. No. 2 grade potatoes on a lot basis and cannot be separated from undamaged production using methods used by the potato packers or processors to whom the potatoes are normally delivered. Quality deficiencies other than internal defects will be adjusted according to the endorsement. Provides quality adjustment coverage for insurable types of potatoes that do not grade U. S. No. 2 (U.S. No. 1, if available in the county and elected by the insured) due to factors other than internal defects or tuber rot (i.e. size, shape, external defects). Refer to 4(b) of the Quality Endorsement for more information.
(b)
(3)
Processing Quality Endorsement in effect: (a) Provides additional coverage for insurable types of potatoes/acreage that are under contract with a processor. Potatoes that are rejected by the processor may be adjusted if the grade is less than U.S. No. 2 due to internal defects, a specific gravity lower than the lesser of 1.074 or the minimum acceptable amount specified in the processor contract, or a fry color of No. 3 or darker due to either sugar exceeding 10 percent or sugar ends exceeding 19 percent. Provides quality adjustment coverage for insurable types of potatoes that do not grade U. S. No. 2 (U.S. No. 1, if available in the county and elected by the insured) due to factors other than internal defects or tuber rot (i.e. size, shape, external defects). Refer to 6(b) of the Processing Quality Endorsement for more information.
(b)
(4)
The actuarial documents may provide “U. S. No. 1" in place of “U. S. No. 2" as used in the Quality Endorsement or Processing Quality Endorsement. If both U. S. No. 1 and 2 are available in the actuarial documents, the insured may elect U. S. No. 1 or 2 by potato type or group, if separate types or groups are specified in the Special Provisions.
E
General Provisions Not Applicable to CAT Coverage: (1) (2) (3) Optional Units. Northern Potato Quality Endorsement. Northern Potato Processing Quality Endorsement.
9
FCIC-25361 (4) (5) (6) (7) (8) 9 10 (RESERVED) (RESERVED) Potato Certified Seed Endorsement. Northern Potato Storage Coverage Endorsement. High Risk Land Exclusion.
MAY 1998
Hail and Fire Exclusion Provisions (also not applicable to limited coverage). Written Agreements.
10
MAY 1998
FCIC-25361
(RESERVED)
11
FCIC-25361
MAY 1998
(RESERVED)
12
MAY 1998 PART 2 POTATO APPRAISALS 11 GENERAL APPRAISAL STANDARDS A General Instructions (1) (2)
FCIC-25361
The following are directions for appraising potential production of Northern potatoes according to growth stages through maturity. Ascertain whether the insured also is a broker, packer, or processor PRIOR to harvest. If it is determined that the insured also is a broker, packer, or processor, a PREHARVEST appraisal is mandatory for comparison with the record of harvested production in order to expose any significant discrepancies. ANY DEVIATIONS IN THE APPRAISAL METHODS REQUIRE FCIC’S WRITTEN AUTHORIZATION (as described in the LAM).
(3) B
As Specified in the LAM, Appraisals Are to Be Made: (1) (2) On unharvested potato acreage that is to be put to another use or abandoned and no longer cared for. For damage such as hail, flooding, etc. Defer such appraisals to a later date in order to assess crop recovery and to obtain more accurate appraisals. See the LAM for further instruction on deferred appraisals. See the LAM for additional reasons for appraisals.
(3) C
Appraisal to Be Made in Addition to Those Specified in The LAM An appraisal will be made for production lost due to harvest PRIOR to full maturity; i.e., EARLY HARVEST. Production to count from such acreage will be determined by increasing the amount of harvested production by 2 percent for each day the potatoes are harvested earlier than 45 days prior to the calendar date for the end of the insurance period, unless a time period other than 45 days is specified in the Special Provisions. The early harvest adjustment to potato production will not be made if the potatoes are damaged by an insurable cause of loss, and leaving the crop in the field would either reduce production or decrease quality. NOTE: In certain instances, for example, when planting takes place earlier than normal, the full maturity date established by the policy could be later than necessary and result in increasing production even though the production is fully mature. In such cases, insurance providers should document that the production did reach full maturity prior to the “fully mature date” established by the crop provisions (or if applicable, the date established by the Special Provisions) and that the “bulking” factor was not applied.
13
FCIC-25361 EXAMPLE
The insured harvested 1,000 hundredweight of potatoes 50 days (early harvest) before the calendar date for the end of the insurance period. 50 days - 45 days = 5 days 2% X 5 days = 10% increase in production .10 X 1,000 hundredweight = 100.0 hundredweight 1,000 hundredweight + 100 hundredweight = 1,100 hundredweight production to count.
MAY 1998
D
Other Loss Adjustment Considerations Insured’s Awareness of Disease Problem in Previous Year (1) When preparing claims involving damage resulting from disease, such as late blight, follow the standards and guidelines in the LAM in the section entitled “Claims Involving Severe Insect, Disease, or Weed Infestation” to determine whether appraisals for uninsured causes of loss are applicable. For example, if it is determined that the insured was aware of a late blight problem in the preceding crop year but did not follow recognized good farming practices, some or all of the loss will be considered an uninsured loss. Failure to follow recognized, good farming practices might include, but is not limited to the following: (a) Failure to adequately dispose of infected potatoes from prior years’ production according to methods recommended by representatives from CSREES, local universities, and/or the State Department of Agriculture, or Failure to apply appropriate fungicides.
(2)
(b) 12
SAMPLE SELECTION STANDARDS A Selecting Representative Samples for Appraisals (1) Determine the number of recommended representative samples for a field or subfield by the field size, the average stage of growth, age (size) and general capabilities of the plants, and variability of potential production and plant damage within the field or subfield. Split the field into subfields when: (a) (b) (3) variable damage causes the crop potential to appear to be significantly different within the same field; or the insured wishes to destroy a portion of a field.
(2)
Each subfield must be appraised separately. 14
MAY 1998 (4)
FCIC-25361 Take as many representative samples as necessary for an accurate appraisal, but use of fewer than the recommended minimum number of representative samples shown in subsection B, below, must be explained in the remarks section of the appraisal worksheet. (For example, if flood damage destroyed the entire field (or subfield) of early emerged plants, this condition could be documented and less than the minimum number of samples could be used for the field (or subfield)).
B
Minimum Sample Recommendations for Representative Samples
ACRES IN FIELD OR SUBFIELD O.1 - 10.0 10.1 - 40.0 MINIMUM NO. OF SAMPLES 3 4
Add one additional sample for each additional 40.0 acres (or fraction thereof) in the field or subfield.
C
Measuring Row Width for Representative Sample Selection Use these instructions for all appraisal methods. (1) Use a measuring tape marked in inches or convert a tape marked in tenths, to inches, to measure row width. Refer to the LAM for conversion table. Measure across THREE OR MORE row spaces, from the center of the first row to the center of the fourth row (or as many rows as needed), and divide the result by the number of row spaces measured across, to determine an average row width in whole inches. Example: Row 1 Row 2 Row 3 Row 4
(2)
Row Space
Row Space
Row Space
š..................................114 inches........................................š 114 inches ÷ 3 row spaces = 38 in. average row width (3) Apply the average row width to table in subsection 12D to determine the required length of sample row.
15
FCIC-25361 D Row Width and Length Table
ROW WIDTH 42" 40" 38" 36" 34" 32" 30" 28" 26" 24" 22" 20" 18" 16" 14" LENGTH - 1/100 ACRE 125' 131' 138' 145' 154' 163' 174' 187' 202' 218' 238' 262' 290' 326' 374' LENGTH -1/1000 ACRE 12.5' 13.1' 13.8' 14.5' 15.4' 16.3' 17.4' 18.7' 20.2' 21.8' 23.8' 26.2' 29.0' 32.6' 37.4'
MAY 1998
When 2 or more rows are used for a pattern, divide the length of a single row pattern by the number of rows in the pattern. The combined length of all rows must equal the single row length.
E
Special Instructions for Representative Samples If Potatoes Have a Tuber Rot Condition (1) If tuber-rot symptoms are evident, adjusters are to take representative samples from infested areas in which the potatoes are left in the field or from representative samples of harvested production prior to storage to determine the percentage of tuber rot (section 13). Damaged and undamaged production should be kept separate, particularly when damaged production can cause damage to or contamination of the undamaged production. If the tubers show no symptoms of tuber rot at the time of a field inspection and disease or other insurable conditions that may later lead to tuber rot are evident in the vines or field, adjusters are to document this fact and inform the insured to notify the insurance provider immediately if symptoms of tuber rot are subsequently discovered prior to harvest or storage. NOTE: These representative samples must be obtained no later than the time the potatoes are placed in storage, if the production is stored prior to sale, or the date they are delivered to a buyer, wholesaler, packer, broker, or other handler if production is not stored. If there is 16
(2)
MAY 1998
FCIC-25361 a possibility of damage occurring during transportation, representative samples should be obtained prior to transporting the potatoes. (3) If the Storage Coverage Endorsement is in effect, and 5.1 percent or more (by weight) is affected by tuber rot in storage, the insured must notify the insurance provider IMMEDIATELY, but no later than 72 hours of the initial discovery. The adjuster or a third party approved by the insurance provider must obtain representative samples of damaged production to determine the percent of damage prior to the sale or disposal of any lot of potatoes. If production is not sold or disposed of within 60 days of the end of the insurance period, samples must be obtained within 60 days of the end of the insurance period. This coverage is applicable only if the insured potatoes were damaged within the insurance period by an insured cause other than freeze that resulted in tuber rot. NOTE: If laboratory facilities are needed for testing, please contact the insurance provider for a list of available facilities.
13
APPRAISAL METHODS A Appraisal Method - From Emergence to Maturity (1) (2) This method is used up to the stage where the number and mature weight of the potatoes can accurately be determined. Select the recommended number of representative sample areas from the table in section 12B, and the required sample row-length for 1/100 acre from the table in section 12D. Pounds-per-plant factor (enter on appraisal worksheet, item 13). (a) Count the live plants (capable of producing tubers) in each sample row. If more than one sprout has emerged at the point where the seed segment was planted, count the "cluster" as a single plant. In-row plant spacing factor: Use the AVERAGE SPACE (inches) between plants. After calculating the average in-row plant spacing (in whole inches) AS ORIGINALLY PLANTED, determine the appropriate factor located in section 13A (c), to be used in the pounds-per-plant formula. Calculate the factor for any plant spacings not listed by dividing the row spacing by 12; e.g., 7÷ 12 = .583 (rounded to three decimal places).
(3)
(b)
17
FCIC-25361 (c) In-Row Plant Spacing Factor Table
IN-ROW PLANT SPACING 6" 8" 10" 12" 14" 16" 18" 20" 22" 24" FACTOR .500 .667 .833 1.000 1.167 1.333 1.500 1.667 1.833 2.000
MAY 1998
(d)
Use the following formula to determine the pounds-per-plant factor for the appraisal worksheet entry: Approved APH Yield divided by the length of row equivalent to 1/100 acre times in-row plant spacing factor (from subsection A (c), above, equals pounds-per-plant factor. Round to nearest hundredth. EXAMPLE
APH Yield Row spacing In-row spacing Length of row (1/100 acre from section 12D) 250 Hundredweight 32" 10" 163'
250 ÷163 X .833 = 1.28 Factor
B
Appraisals After Maturity (Weight Method) (1) Select the recommended number of representative sample areas of 1/1000-acre each from the table in section 12B and the required sample row-length from the table in section 12D. For the grading of potatoes, DIG OR HARVEST representative samples of at least 25 pounds from each field or subfield in a unit. NOTE: The adjuster must find out from the Federal/State inspectors what size (weight) of representative samples are currently required by such inspectors in order to make the grade determinations. (2) Weigh all potatoes in each representative sample that are of harvestable size; i.e., recoverable by harvesting equipment. This
18
MAY 1998
FCIC-25361 includes (but is not limited to) knobs, growth cracks, sunburn, hollow heart, scab, and freeze. Convert the weight of all representative samples to an appraisal per acre, to tenths. (3) If the representative samples of potatoes obtained from the appraisal for the field or subfield, contain potatoes that would qualify as tuber rot or freeze damage, the following steps must be taken: (a) (b) (c) Separate and weigh such potatoes by type of damage. Calculate EACH type of damage as a percent of the entire sample by dividing it by the weight of the entire sample. Use applicable Tuber Rot Table (section 14E) and/or Freeze Damage Table (section 14F) to obtain the percent of damage factor for determining the production to count. Refer to section 14 for adjustments to production to count.
NOTE: This determination (percent) of nonstorability potatoes has not been adjusted for quality. EXAMPLE
The 25-pound sample has potatoes damaged by tuber rot and freeze. (If within the sample, a tuber has both tuber rot and freeze damage, the tuber will be counted as having tuber rot only). Two pounds = tuber rot Two pounds = freeze damage 2÷25 = 8 percent tuber rot 2÷25 = 8 percent freeze
C
Field Inspection Requirements If Tuber Rot Condition Exists (1) When insurance providers receive notification from insureds that a tuber rot condition exists, the adjuster must: (a) Inspect the fields prior to harvest to detect whether tuber rot, or organisms or conditions that lead to tuber rot are present; and Document the findings of this inspection in the policyholder’s file as stated in subsection D. However, if disease or conditions are general and widespread in the area and this prevents the adjuster from making a timely inspection prior to harvest or if access to field(s) is being restricted to avoid spreading disease to other fields, the inspection can be made during or immediately after harvest, provided representative samples can be obtained prior to potatoes being placed in storage.
(b)
19
FCIC-25361 (2)
MAY 1998 Severely affected areas must be marked off and handled separately from the rest of the field. If the insured intends to harvest these areas separately, insurance providers are to inform the insured to keep the production from the affected areas separate from production from unaffected areas. If resources and conditions permit, the adjuster is to dig representative samples. However, if vine kill prevents visual detection of vine infestation and/or it has been recommended not to dig representative samples at this time to avoid spreading disease to the tubers, insurance providers are to use any practical means to verify the infestation (e.g., obtaining or verifying copies of chemical receipts and spraying records to substantiate efforts taken to control the cause of the infestation). If, at the time of the field inspection, harvest has not occurred and no representative samples have been taken (or tubers from samples do not show physical symptoms of tuber rot), instruct the insured to notify the insurance provider of the date potatoes are going to be harvested so that the insurance provider can have the opportunity to inspect the potatoes prior to their being placed in storage.
(3)
(4)
D
Documentation Adjusters must document the following when tuber rot or symptoms of tuber rot is suspected: (1) (2) (3) (4) (5) (6) Date and time of each inspection or telephone contact including storage facility inspections. Producer’s management practices, Fields and units where organisms and/or conditions causing tuber rot were present, Extent of tuber rot discovered (indicate the percentage and type of infection in each representative sample taken), Date of harvest and date of storage, and Any other pertinent information.
E
Special Instructions for Appraised Freeze-Damaged Potatoes (1) The adjuster should contact the insurance provider for equipment, facilities, and any special instructions when freeze damage or symptoms of freeze damage has occurred. If cold weather continues or intensifies BEFORE the unit can be harvested, it may be necessary to appraise or reappraise the acreage.
20
MAY 1998 (2)
FCIC-25361 Appraisals must be initiated promptly for freeze damaged potatoes. Adjusters must identify production damaged by freeze, take representative samples, and segregate the freeze damaged potatoes in connection with making the earliest possible determination of the percent of freeze damage. NOTE: If a unit has been partially harvested (lifted) and some or all of the potatoes that were harvested were not removed from the field before freeze damage occurred, only the unharvested (not lifted) potatoes can be adjusted for freeze damage. The potatoes that had been harvested, even though not removed from the field, cannot be adjusted for freeze damage because the freeze damage occurred outside of the insurance period (the end of the insurance period ends upon harvest of the potatoes). (3) In addition to determining the percent of freeze damage in accordance with the instructions in B(1) through B(3) above, adhere to the following: (a) The adjuster must IMMEDIATELY clean and weigh ALL potatoes in each representative sample (i.e., before any thawing/ dehydration). Put all of the sample potatoes in burlap bags or other ventilated containers. Place the representative samples in SECURE storage which is as near to normal storage conditions as possible. Leave the samples in storage for 10 to 15 days unless the determination must be made sooner. In that case, contact the insurance provider for further instructions. After the required storage period, thoroughly examine the sample potatoes as described below. 1 Cutting objectives - Unless all damage is obvious (as in the case of completely frozen potatoes), cut representative potatoes in each sample to expose characteristic "gray spots" or other damage. INCLUDE potatoes that may appear UNDAMAGED. Use these potatoes for comparison to the other potatoes in the representative sample. Amount - Cut as many sample potatoes as may be necessary, but NOT LESS THAN 25 percent by weight, to determine accurately which potatoes are damaged.
(b)
2
(c)
Identify the exact acreage of potatoes affected by freeze BEFORE the insured begins (or continues) harvest operations. Document with a sketch map or aerial photo. Obtain, from the insured, the location in the facility where any freeze damaged potatoes will be stored. Note this on a Special Report. Also determine where the UNDAMAGED potatoes, if any, are stored.
(d)
21
FCIC-25361 (e)
MAY 1998 Advise the insured the representative samples of any freeze damaged potatoes must be obtained by an adjuster BEFORE storage (for testing purposes). Initiate a record of the representative samples for use in calculating the percent of damage. Explain that freeze damaged potatoes must be stored SEPARATELY in a location that the insured has designated. NOTE: Freeze damaged and undamaged production should be kept separate particularly when damaged production can cause damage to, or contamination of the undamaged production. (g) Insured’s statement. 1 Put a statement to this effect on the Special Report (for signature by the insured): "I/We hereby agree: a to have any representative samples of freeze damaged potatoes obtained when harvested and before storage for loss-appraisal purposes; to designate a segregated storage location for any freeze damaged potatoes in my/our storage facility AND keep such potatoes in that segregated storage until I/we determine the manner of disposition and notify the insurance provider; that when sample-test results become available, I/we will notify the insurance provider of my/our determination as to the destruction or other disposition of any potatoes with freeze damage in excess of 17.9 percent or more; to provide the insurance provider with a reasonable time and opportunity to verify the destruction of any potatoes disposed of in that manner; and furthermore, I/we understand and agree that the production to count for any of my/our potatoes with 19.5 percent or less freeze damage will be computed in accordance with section 11(g)(1) of the Northern Potato Crop Provisions.
(f)
b
c
d
e
2
Make sure that the grower understands the agreement. Obtain his/her signature. Date the agreement.
22
MAY 1998 3
FCIC-25361 Give the insured a copy. Retain the original and one copy for addition of your signed and dated notation when destruction of the freeze damaged potatoes is complete AND verified. At that time, the insured may be given the second carbon copy which shows adjuster-verification of satisfactory destruction of the potatoes.
F
Disposition of Potatoes With Major Freeze Damage Producer’s options are as follows: (1) With the insurance provider’s permission, discard any harvested production, within 21 days of the end of the insurance period from affected acreage that has freeze damage in excess of 17.9 percent. NOTE: If production with damage in excess of 17.9 percent is not discarded within 21 days of the end of the insurance period 15 percent of such production will be counted. (2) When the percent of freeze damage is determined to be 19.5 percent or greater and the production is NOT harvested and is destroyed, the production to count will be zero.
14
ADJUSTMENTS TO POTATO PRODUCTION A General Information (1) The Northern Potato Crop Provisions, Quality Endorsement, and the Processing Quality Endorsement provide for a reduction in the production to count when the quality of harvested or appraised production is reduced due to an insured cause of loss occurring within the insurance period. The quantity of production to count is reduced only when a grade inspection is performed and the production meets the requirements specified in the crop provisions and applicable endorsements. The Storage Coverage Endorsement extends the number of days an insured entity has to discover and report certain covered quality deficiencies. Subsections B, C, and D describe adjustments made to production for various quality deficiencies and coverage combinations. All damage percentages are determined on a weight basis and any price used for adjustment of the DAMAGED production must be reflective of the value of the actual damaged production. For example: When the Northern Potato Crop Provisions or Quality Endorsement(s) provide for adjustment of production based on a price agreed upon, a price established for NON-damaged production in a contract between
(2)
(3)
23
FCIC-25361
MAY 1998 the insured and the processor, packer, etc., would not be used since the agreed upon price is for NON-damaged production. Damaged production must be sold at the agreed upon price before that price can be used for adjustment. (4) Damaged potatoes that have a zero market value in the insured’s local marketing area and a net zero value at a market within a reasonable distance outside the local marketing area, no production will be counted if the production is discarded in a manner acceptable to the insurance provider. See section 6 for the definition of net zero value. When production to count has been determined as zero, the insured must certify destruction of such production. (a) (b) Follow the instructions in the LAM for completing and leaving Certification Forms with the insured. Include the following statement on the Certification Forms: “Failure to use recognized, recommended methods to destroy unharvested or discarded potatoes to assure destruction of pathogenic organisms may result in the same type of disease being considered uninsurable the next crop year.”
(5)
B
Adjustments for Tuber Rot Only; Quality Deficiencies Covered Under the Quality Endorsement(s) Only; or a Combination of Tuber Rot and Quality Deficiencies Covered Under Quality Endorsement(s): (1) Complete adjustments for tuber rot first. Skip B(1) and go directly to B(2) if tuber rot is not present or is not due to an insured cause: (a) If 5.0 percent (by weight) or less of the production to count is damaged by tuber rot, production is adjusted at a 1 to 1 ratio, in accordance with the Tuber Rot Table in section 14E. EXAMPLE
If 3.0 percent of the representative sample is affected by tuber rot, the tuber rot factor would be .970 and the production to count would be 97.0 percent of the weight of the production being adjusted.
(b)
If 5.1 percent (by weight) or greater: 1 If a sales price for damaged production is agreed upon in writing between the insured and a buyer, or potatoes that are delivered to a buyer within 21 days of the end of the insurance period (60 days if the Storage Coverage Endorsement is applicable), multiply the weight of the production being adjusted by the factor that results from dividing the price received or that will be received per hundredweight by the highest available price election. The 24
MAY 1998
FCIC-25361 factor cannot exceed 1.000. If production is sold for a price lower than the value appropriate to and representative of the local market, determine the value of the production based on the price the insured could have received in the local market. Once this method of adjustment is used, NO FURTHER ADJUSTMENT IS NECESSARY. EXAMPLE
If the agreed upon price is $2.00 and the highest available price elections is $4.00, the tuber rot adjustment factor would be .500 ($2.00 ÷$4.00) and the production to count would be 50 percent of the weight of the production being adjusted.
2
If a sales price is not agreed upon as indicated above and the production remains in storage 22 or more days (61 or more days if the Storage Coverage Endorsement is applicable) after the end of the insurance period, adjust production to count in accordance with the Tuber Rot Table, section 14E. For harvested production discarded within 21 days of the end of the insurance period, (60 days if the Storage Coverage Endorsement is applicable) and appraised unharvested production that could not have been sold, the production to count will be zero. If such production could have been sold, it will be adjusted in accordance with the Tuber Rot Table (section 14E) unless the production qualifies for a price comparison method of adjustment under the quality endorsement(s). In this case, such production will be adjusted as indicated in B(2)(a)3.
3
(2)
Adjustment for quality deficiencies covered under the Quality or Processing Quality Endorsement: (Complete adjustments indicated in this subsection only if subsection (1)(b)1 (price adjustment for tuber rot) is NOT applicable.) (a) Production grading less than U.S. No. 2 (U.S. No. 1 if available in the county and elected by insured) due to internal defects (the amount of production with such defects must be in excess of the tolerance allowed for the applicable grade on a lot basis and must not be separable from undamaged production using methods used by the potato packers or processors to whom the insured normally delivers potato production); and, for production covered under the Processing Quality Endorsement that has been rejected by the processor and that has a specific gravity lower than the lesser of 1.074 or the minimum acceptable amount specified in the processor contract, or a fry color of No. 3 or darker due to sugar exceeding 10.0 percent or sugar ends exceeding 19.0 percent, is adjusted as follows:
25
FCIC-25361 1
MAY 1998 If a sales price for the damaged production is agreed upon in writing between the insured and a buyer or potatoes that are delivered to a buyer within 21 days of the end of the insurance period (60 days if the Storage Coverage Endorsement is applicable), multiply the weight of the production being adjusted by the factor that results from dividing the price received or that will be received per hundredweight by the highest available price election. The factor cannot exceed 1.000. If production is sold for a price lower than the value appropriate to and representative of the local market, determine the value of the production based on the price the insured could have received in the local market. Once this method of adjustment is used, NO FURTHER ADJUSTMENT IS NECESSARY. EXAMPLE
If the agreed upon price is $2.00 and the highest available price elections is $4.00, the quality adjustment factor would be .500 ($2.00 ÷$4.00) and the production to count would be 50 percent of the weight of the production being adjusted.
2
If a sales price is not agreed upon as indicated above and the production remains in storage 22 or more days (61 or more days if the Storage Coverage Endorsement is applicable) after the end of the insurance period, the adjustment factor will be determined as follows: (i) The combined weight of sampled potatoes that grade U.S. No. 2 (U. S. No.1 if available in the county and elected by the insured) or better and that are damaged by freeze or tuber rot will be divided by the total sample weight; and EXAMPLE
50 lbs is the total sample weight. The combined weight of tuber rot, freeze and potatoes grading less than U. S. No. 2 divided by 50 equals the percent of damage to be used in (ii) below.
(ii) The percentage determined in (i), above, will be divided by the historical percentage factor determined in accordance with the Special Provisions. NOTE: This factor (not to exceed 1.000) multiplied by any applicable adjustment factor from the Tuber Rot Table (section 14E) will be the Combination Adjustment Factor applied to the damaged production.
26
MAY 1998 EXAMPLE
FCIC-25361
If only 50 percent of the potatoes grade U.S. No. 2 (as determined in (2)(a) above) and the historical factor is 70.0 percent, the adjustment factor under the quality endorsement would be 50.0 ÷ 70.0 = .714; and if the tuber rot factor is .970, the Combination Adjustment Factor would be .693 (.714 X .970).
3
For harvested production discarded within 21 days of the end of the insurance period (60 days if the Storage Coverage Endorsement is applicable) and appraised unharvested production that could not have been sold, the production to count will be zero. If such production could have been sold, the adjustment factor will be determined by dividing the price that could have been received for the damaged production in the local market by the highest price election available.
(b)
Production grading less than U.S. No. 2 (U.S. No.1 if available in the county and elected by insured) for reasons other than those indicated in subsection 2(a) above (e.g. external defects, size, shape), will be adjusted using the historical percentage factor as indicated in subsection (2)(a)2 (i) and (ii).
NOTE: Potatoes harvested or appraised prior to full maturity that do not grade U. S. No. 2 due solely to size will be considered to have met U. S. No. 2 standards unless the potatoes are damaged by an insurable cause of loss and leaving the crop in the field would either reduce production or decrease quality. C Adjustments for a Combination of Tuber Rot and Freeze Damage; or a Combination of Tuber Rot, Freeze Damage and Quality Deficiencies Covered Under Quality Endorsement(s): (1) Complete adjustments for tuber rot and freeze damage as follows: (a) If combined tuber rot and freeze damage is 5.0 percent (by weight) or less, production is adjusted at a 1 to 1 ratio, in accordance with the Tuber Rot Table in section 14E or the Freeze Damage Table in section 14F. EXAMPLE
If 3.0 percent of the representative sample is affected by tuber rot and 1.5 percent is freeze damaged, the factor would be .955 (1.000 - .045) and the production to count would be 95.5 percent of the weight of the production being adjusted.
(b)
If 5.1 percent (by weight) or greater: 1 If a sales price for damaged production is agreed upon in writing between the insured and a buyer or potatoes that are delivered to a buyer within 21 days of the end of the 27
FCIC-25361
MAY 1998 insurance period (60 days if the Storage Coverage Endorsement is applicable), multiply the weight of the production being adjusted by the factor that results from dividing the price received or that will be received per hundredweight by the highest available price election. The factor cannot exceed 1.000. If production is sold for a price lower than the value appropriate to and representative of the local market, determine the value of the production based on the price the insured could have received in the local market. Once this method of adjustment is used, NO FURTHER ADJUSTMENT IS NECESSARY. EXAMPLE
If the agreed upon price is $2.00 and the highest available price election is $4.00, the quality adjustment factor would be .500 ($2.00 ÷ $4.00) and the production to count would be 50 percent of the weight of the production being adjusted.
2
If a sales price is not agreed upon as indicated above and the production remains in storage 22 or more days (61 or more days if the Storage Coverage Endorsement is applicable) after the end of the insurance period, determine the “Combination Adjustment Factor” in accordance with the Tuber Rot Table (section 14E) and Freeze Damage Table (section 14F). EXAMPLE
6.0 percent tuber rot =.900 tuber rot factor and 6.0 percent freeze damage =.900 freeze damage factor. The “Combination Adjustment Factor” would be .810 (.900 X .900). Note: When determining the percentage of freeze damage, divide the weight of the potatoes with freeze damage only by the total weight of the sample (including potatoes with tuber rot). When determining the percentage of tuber rot damage, divide the weight of the potatoes with tuber rot damage only by the total weight of the sample (including potatoes with freeze damage).
3
For harvested production discarded within 21 days of the end of the insurance (60 days if the Storage Coverage Endorsement is applicable) and appraised unharvested production that could not have been sold, the production to count will be zero. If such production could have been sold, it will be adjusted in accordance with the Tuber Rot Table (section 14E) and Freeze Damage Table (section 14F) unless production qualifies for a price comparison method of adjustment under a quality endorsement. In this case, such production will be adjusted as indicated in C(2)(a)(3).
(2)
Adjustment for quality deficiencies covered under the Quality or Processing Quality Endorsement. (Complete adjustments indicated in this subsection only if subsection C (1)(b)1 (price adjustment for combined tuber rot and freeze damage of 5.1 or greater is NOT 28
MAY 1998 applicable.) (a)
FCIC-25361
Production grading less than U.S. No. 2 (U.S. No.1 if available in the county and elected by insured) due to internal defects (the amount of production with such defects must be in excess of the tolerance allowed for the applicable grade on a lot basis and must not be separable from undamaged production using methods used by the potato packers or processors to whom the insured normally delivers potato production); and, for production covered under the Processing Quality Endorsement that has been rejected by the processor, has a specific gravity lower than the lesser of 1.074 or the minimum acceptable amount specified in the processor contract, or a fry color of No. 3 or darker due to sugar exceeding 10.0 percent or sugar ends exceeding 19.0 percent, is adjusted as follows: 1 If a sales price for the damaged production is agreed upon in writing between the insured and a buyer or potatoes that are delivered to a buyer within 21 days of the end of the insurance period (60 days if the Storage Coverage Endorsement is applicable), multiply the weight of the production being adjusted by the factor that results from dividing the price received or that will be received per hundredweight by the highest available price election. The factor cannot exceed 1.000. If production is sold for a price lower than the value appropriate to and representative of the local market, determine the value of the production based on the price the insured could have received in the local market. Once this method of adjustment is used, NO FURTHER ADJUSTMENT IS NECESSARY AND ANY ADJUSTMENT FACTOR BASED ON THE TUBER ROT AND FREEZE DAMAGE CHARTS IS IGNORED. EXAMPLE
If the agreed upon price is $2.00 and the highest available price election is $4.00, the quality adjustment factor would be .500 ($2.00 ÷ $4.00) and the production to count would be 50 percent of the weight of the production being adjusted.
2
If a sales price is not agreed upon as indicated above and the production remains in storage 22 or more days (61 or more days if the Storage Endorsement is applicable) after the end of the insurance period, the adjustment factor will be determined as follows: (i) The combined weight of sampled potatoes that grade U.S. No. 2 ( U.S. No.1 if available in the county and elected by the insured) or better and that are damaged by freeze or tuber rot will be divided by the total sample weight; and
29
FCIC-25361 EXAMPLE
MAY 1998
50 lbs is the total sample weight. The combined weight of tuber rot, freeze and potatoes grading less than U. S. No. 2 divided by 50 equals the the percent of damage to be used in (ii) below.
(ii) The percentage determined in (i) above will be divided by the historical percentage factor determined in accordance with the Special Provisions. NOTE: This factor (not to exceed 1.000) multiplied by any applicable adjustment factors from the Tuber Rot Table (section 14E) and Freeze Damage Table (section 14F) will be the Combination Adjustment Factor applied to the damaged production. EXAMPLE
If only 50 percent of the potatoes grade U.S. No. 2 (as determined in 2 above) and the historical factor is 70 percent, the adjustment factor under the quality endorsement would be 50 ÷ 70 = .714; if the tuber rot factor is .900 and the freeze damage factor is .900, the Combination Adjustment Factor would be .578 (.714 X .900 X .900).
3
For harvested production discarded within 21 days of the end of the insurance period (60 days if the Storage Coverage Endorsement is applicable) and appraised unharvested production that could not have been sold, the production to count will be zero. If such production could have been sold, the adjustment factor will be determined by dividing the price that could have been received for the damaged production in the local market by the highest price election available.
(b)
Production grading less than U.S. No. 2 (U.S. No. 1 if available in the county and elected by insured) for reasons other than those indicated in subsection 2(a) above (e.g. external defects, size, shape), will be adjusted using the historical percentage factor as indicated in subsection (2)(a)2 (i) and (ii).
NOTE: Potatoes harvested or appraised prior to full maturity that do not grade U. S. No. 2 due solely to size will be considered to have met U. S. No. 2 standards unless the potatoes are damaged by an insurable cause of loss and leaving the crop in the field would either reduce production or decrease quality. D Adjustments for Freeze Damage Only; or a Combination of Freeze Damage and Quality Deficiencies Covered Under Quality Endorsement(s): (1) Determine freeze damage factor in accordance with the Freeze Damage Table in section 14F. 30
MAY 1998
FCIC-25361 NOTE: If freeze damage is in excess of 17.9 percent and production is not discarded within 21 days of the end of the insurance period, the freeze damage factor will be .150 (15.0 percent of the damaged production will be production to count). (2) Adjustment for quality deficiencies covered under the Quality or Processing Quality Endorsement (a) Production grading less than U.S. No. 2 (U.S. No.1 if available in the county and elected by insured) due to internal defects (the amount of production with such defects must be in excess of the tolerance allowed for the applicable grade on a lot basis and must not be separable from undamaged production using methods used by the potato packers or processors to whom the insured normally delivers potato production); and, for production covered under the Processing Quality Endorsement that has been rejected by the processor and has a specific gravity lower than the lesser of 1.074 or the minimum acceptable amount specified in the processor contract, or a fry color of No. 3 or darker due to sugar exceeding 10.0 percent or sugar ends exceeding 19.0 percent, is adjusted as follows: 1 If a sales price for the damaged production is agreed upon in writing between the insured and a buyer or potatoes that are delivered to a buyer within 21 days of the end of the insurance period (60 days if the Storage Coverage Endorsement is applicable), multiply the weight of the production being adjusted by the factor that results from dividing the price received or that will be received per hundredweight by the highest available price election. The factor cannot exceed 1.000. If production is sold for a price lower than the value appropriate to and representative of the local market, determine the value of the production based on the price the insured could have received in the local market. Once this method of adjustment is used, NO FURTHER ADJUSTMENT IS NECESSARY AND ANY ADJUSTMENT FACTOR BASED ON THE FREEZE DAMAGE TABLE IS IGNORED. EXAMPLE
If the agreed upon price is $2.00 and the highest available price election is $4.00, the quality adjustment factor would be .500 ($2.00 ÷ $4.00) and the production to count would be 50 percent of the weight of the production being adjusted.
2
If a sales price is not agreed upon as indicated above and the production remains in storage 22 or more days (61 or more days if the Storage Coverage Endorsement is applicable) after the end of the insurance period, the adjustment factor will be determined as follows: 31
FCIC-25361
MAY 1998 (i) The combined weight of sampled potatoes that grade U.S. No. 2 (U. S. No.1 if available in the county and elected by the insured) or better and that are damaged by freeze will be divided by the total sample weight; and EXAMPLE
50 lbs is the total sample weight. The combined weight of freeze and potatoes grading less than U. S. No. 2 divided by 50 equals the the percent of damage to be used in (ii) below.
(ii) The percentage determined in (i) above will be divided by the historical percentage factor determined in accordance with the Special Provisions. NOTE: This factor (not to exceed 1.000) multiplied by any applicable adjustment factor from the Freeze Damage Table (section 14F) will be the Combination Adjustment Factor applied to the damaged production. EXAMPLE
If only 50 percent of the potatoes grade U.S. No. 2 (as determined in 2 above) and the historical factor is 70.0 percent, the adjustment factor under the quality endorsement would be 50÷70 = .714; and the freeze damage factor is .900, the Combination Adjustment Factor would be .643 (.714 X.900).
3
For harvested production discarded within 21 days of the end of the insurance period (60 days if the Storage Coverage Endorsement is applicable) and appraised unharvested production that could not have been sold, the production to count will be zero. If such production could have been sold, the adjustment factor will be determined by dividing the price that could have been received for the damaged production in the local market by the highest price election available.
(b)
Production grading less than U.S. No. 2 (U.S. No. 1 if available in the county and elected by insured) for reasons other than those indicated in subsection 2(a) above (e.g. external defects, size, shape), will be adjusted using the historical percentage factor as indicated in subsection (2)(a)2 (i) and (ii).
NOTE: Potatoes harvested or appraised prior to full maturity that do not grade U. S. No. 2 due solely to size will be considered to have met U. S. No. 2 standards unless the potatoes are damaged by an insurable cause of loss and leaving the crop in the field would either reduce production or decrease quality.
32
MAY 1998 E
WHOLE PERCENT DAMAGE 0 1 2 3 4 5 6
FCIC-25361 Tuber Rot Table
TENTHS OF PERCENT - DAMAGE 0 1.000 .990 .980 .970 .960 .950 .900 .800 .700 .500 .250 .1 .999 .989 .979 .969 .959 .945 .890 .790 .680 .475 .225 .2 .998 .988 .978 .968 .958 .940 .880 .780 .660 .450 .200 .3 .997 .987 .977 .967 .957 .935 .870 .770 .640 .425 .175 .4 .996 .986 .976 .966 .956 .930 .860 .760 .620 .400 .150 .5 .995 .985 .975 .965 .955 .925 .850 .750 .600 .375 .150 .6 .994 .984 .974 .964 .954 .920 .840 .740 .580 .350 .150 .7 .993 .983 .973 .963 .953 .915 .830 .730 .560 .325 .150 .8 .992 .982 .972 .962 .952 .910 .820 .720 .540 .300 .150 .9 .991 .981 .971 .961 .951 .905 .810 .710 .520 .275 .150
7 8 9
10
33
FCIC-25361 F
WHOLE PERCENT DAMAGE 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
MAY 1998 Freeze Damage Table
TENTHS OF PERCENT - DAMAGE 0 1.000 .990 .980 .970 .960 .950 .900 .850 .800 .750 .700 .650 .600 .550 .500 .450 .350 .250 .150 .050 .000 .1 .999 .989 .979 .969 .959 .945 .895 .845 .795 .745 .695 .645 .595 .545 .495 .440 .340 .240 .140 .040 .000 .2 .998 .988 .978 .968 .958 .940 .890 .840 .790 .740 .690 .640 .590 .540 .490 .430 .330 .230 .130 .030 .000 .3 .997 .987 .977 .967 .957 .935 .885 .835 .785 .735 .685 .635 .585 .535 .485 .420 .320 .220 .120 .020 .000 .4 .996 .986 .976 .966 .956 .930 .880 .830 .780 .730 .680 .630 .580 .530 .480 .410 .310 .210 .110 .010 .000 .5 .995 .985 .975 .965 .955 .925 .875 .825 .775 .725 .675 .625 .575 .525 .475 .400 .300 .200 .100 .000 .000 .6 .994 .984 .974 .964 .954 .920 .870 .820 .770 .720 .670 .620 .570 .520 .470 .390 .290 .190 .090 .000 .000 .7 .993 .983 .973 .963 .953 .915 .865 .815 .765 .715 .665 .615 .565 .515 .465 .380 .280 .180 .080 .000 .000 .8 .992 .982 .972 .962 .952 .910 .860 .810 .760 .710 .660 .610 .560 .510 .460 .370 .270 .170 .070 .000 .000 .9 .991 .981 .971 .961 .951 .905 .855 .805 .755 .705 .655 .605 .555 .505 .455 .360 .260 .160 .060 .000 .000
G
Adjusting Potatoes Insured Under the Certified Seed Endorsement (1) Pre-appraisal Preparation. Upon receipt of the notice of loss but before proceeding to adjust the loss, contact the insured to determine that they have the current seed inspection records (from the “Certified Seed” inspector). Also determine that aerial photos are available. The insured must notify the insurance provider of any loss under this endorsement not later than 14 days after the insured received notice from the state certification agency that any acreage failed certification. Verifications: (a) Verify at least 3 years of certified seed production by the 34
(2)
(3)
MAY 1998
FCIC-25361 insured. The insured must provide acceptable records of certified seed potato acreage and production for the previous 3 years unless a written agreement provides otherwise. These records must clearly indicate the number of the insured’s acres entered into the potato seed certification program administered by the state in which the seed is grown. (b) Verify that the certified seed acreage insured is NOT greater than 125 percent of the average number of acres entered into and passing certification in the potato certified seed program in the three previous calendar years unless a written agreement provides otherwise. If the insured enters more than this number of acres into the certification program, the insured’s certified seed production guarantee for the current crop year will be reduced as follows: 1 Multiply the average number of the insured’s acres entered into and passing certification in the potato certified seed program the 3 previous calendar years by 1.25, and divide the result by the number of acres grown by the insured for certified seed in the current crop year; and Multiply the result of 1 above (not to exceed 1.0) by the production guarantee for certified seed for the current crop year. EXAMPLE
3 year average =100 certified acres Current year = 150 certified acres 100 X 1.25 = 125 125÷150 = .833 400 hundredweight guarantee for certified acres 400 X .833 = 333.2 hundredweight guarantee
2
(c) (d)
Verify the insured’s compliance with field rotation requirements (check seed production records). Verify the insured’s seed source (supplier) and the quantity relative to planted acreage. Check seed tags, “import” permits, or (if the insured used their own seed) the previous year’s certification records. Record such information on the Field Identification and Certification Record in subsection (6). Verify the insured’s compliance with all applicable certification requirements.
(e) (4)
Indemnity Payment for Certified Seed Loss (a) If, due to insurable causes occurring within the insurance period, potato production does not qualify as certified seed on any insured certified seed potato acreage within a unit, the 35
FCIC-25361
MAY 1998 insured will be paid the dollar amount per hundredweight contained in the Special Provisions for that purpose, multiplied by the insured’s production guarantee for such acreage, multiplied by the insured’s share, multiplied by the acres failing certification. (b) Any production that does not qualify as certified seed because of varietal mixing or the insured’s failure to follow the standard practices and procedures required for certification will be considered as lost due to uninsured causes.
(5)
Completion. Complete the claim form as outlined in section 20 (the appraisal worksheet will be completed if an appraisal is necessary under the production guarantee).
36
MAY 1998 (6) Potato Field Identification and Certification Record FOR ILLUSTRATION PURPOSES ONLY
POTATO FIELD IDENTIFICATION AND CERTIFICATION RECORD Page_1__of__1___ NAME OF INSURED I. M. Insured AERIAL PHOTO OR MAP NO. UNIT 00100 CONTRACT NO. XXXXXXX
FCIC-25361
FARM SERIAL NO. A101
LEGAL DESCRIPTION
A
C
Farris Road----> xx Residence
B
CERTIFICATION RECORD
(1) FIELD ID (2) FIELD CERT NO. 84-032 (3) ACRES (4) VARIETY (5) SEED SOURCE (6) INSPECTION RECORD (7)
A
8.0
C77 Belrus
High View Farm Rt. 2 Town, ST XXXXX ABC Potato Co. Box XX Town, ST XXXXX ABC Potato Co. Box XX Town, ST XXXXX
7-20-YYYY - Failed
B
84-033
15.4
C93 Superior
7-20-YYYY - OK 8-25-YYYY - OK 2-05-YYYY - OK 7-20-YYYY - OK 8-25-YYYY - Failed
C
84-034
4.7
C93 Kennebeck
REMARKS
INSURED’S SIGNATURE
DATE
MM/DD/YYYY
CODE #
ADJUSTER’S SIGNATURE
DATE
123xx
i. R. ADJUSTER
MM/DD/YYYY
37
FCIC-25361
MAY 1998
(RESERVED)
38
MAY 1998 15 APPRAISAL WORKSHEET ENTRIES AND COMPLETION STANDARDS A General Information (1)
FCIC-25361
The potato appraisal worksheet herein contains the required standards items and information required for documenting appraisals. Insurance provider potato appraisal worksheets must contain at least the required standard items. Insurance providers can format potato appraisal worksheets as applicable provided all required standard items are included on the FCIC-approved appraisal worksheet.
(2)
B
Separate appraisal worksheets are required for each unit appraised, and for each field or subfield which has a differing base yield or farming practice. Refer to section 12B for sampling requirements. From Emergence To Mature Stage and Weight Method There are two types of appraisals contained on the appraisal worksheet. For every inspection, complete items 1 through 4, the area for the narrative, if applicable, and items 24 and 25.
C
D
Complete the appraisal worksheet as instructed below. Standard items and numbers contained in this section correspond with the sample appraisal worksheet.
Verify or make the following entries: Standard Items 1 2 3 4 Insured’s Name Policy Number Unit Number Crop Year Information Required Name of the insured that identifies exactly the person (legal entity) to whom the policy is issued. Insured’s assigned policy number. Five-digit unit number from the acreage report. Crop year, as defined in the policy, for which the claim has been filed. PART 1 - FROM EMERGENCE TO MATURE STAGE 5 6 7 Field ID Acreage in Field Row Space Field identification symbol. Acreage in the field or sub-field being appraised (to nearest tenth) identified in item 5. Measure across 3 or more spaces, and enter average space in whole inches (Refer to section 12D). 39
FCIC-25361 8 9 10 11 12 Type Number Of Plants Total Plants Number Samples Average Number Plants Factor
MAY 1998 Variety and type of potatoes when shown in the actuarial documents. Number of live plants per sample. (Refer to length of sample for 1/100 acre - section 12D). Total live plants from all samples. Total number of plants in all samples in item 9. Result of dividing Total Plants (item 10) by Number of Samples (item 11) rounded to nearest tenth. Enter the pounds-per-plant factor, to the nearest hundredth, for the applicable guarantee (refer to section 13). Show the calculation in the narrative. Result of multiplying the average number of plants (item 12) by the pounds-per-plant factor (item 13) rounded to nearest tenth.
13
14
Cwt. Per Acre Appraisal
PART II - WEIGHT METHOD (After maturity for samples when mature potatoes can be weighed). Verify or make the following entries: Standard Items 15 16 17 Field ID Acreage in Field Row Space Information Required Field identification symbol. Acreage in field or subfield (to nearest tenth) identified in item 15. Enter the row width (average space in inches), and variety and type of potatoes ABBREVIATED exactly as shown in the actuarial documents. Line 1 - Number of live plants per sample. (Refer to length of sample for 1/100 acre - section 12D). Line 2 - Enter gross weight (pounds) of harvestable-size tubers from each sample. 19 20 Total Pounds Number Of Samples Total weight of tubers, in pounds to tenths, for all samples in Line 2 of item 18. Total number of samples in item 18.
18
Number Of Plants
40
MAY 1998 21 22 23 Average Lbs. Per Sample Conv. Factor to Cwt. Cwt. Per Acre Appraisal
FCIC-25361 Result of dividing Total Pounds (item 19) by Number of Samples (item 20) rounded to nearest tenth. Enter Conversion Factor “10". Results of multiplying Average Lbs per Sample (item 21) by Conversion Factor “10" (item 22).
Narrative: a For EACH field in item 15, show the PERCENT-OF-SAMPLE calculation (U.S. No. 2 or better under applicable standards) for the acreage insured under the Quality Endorsement and the Processing Quality Endorsement (as applicable) AND the ADJUSTED freeze percent (percent to count). Enter and designate the percent of heat necrosis, rot, etc. Refer to section 14 for information pertaining to percent of damage as it relates to tuber-rot damage. For the UNIT - Show the historic "Percentage Factor" as originated by the insurance provider on the APH form if this was done. Otherwise, use the actuarial documents factor. For UNHARVESTED potatoes under Processing Quality Endorsement, if applicable, of unharvested processing potatoes is appraised at 0.0 due to show that "Field (list cause).” Adjuster’s Signature, Code Number, and Date Insured’s Signature and Date Signature of adjuster, code number, and date signed after the insured (or insured’s authorized representative) has signed.
b c
d
24
25
Insured’s (or insured’s authorized representative’s) signature and date. BEFORE obtaining insured’s signature, REVIEW ALL ENTRIES on the appraisal worksheet WITH THE INSURED, particularly explaining codes, etc., that may not be readily understood.
41
FCIC-25361
MAY 1998
(RESERVED)
42
MAY 1998 FOR ILLUSTRATION PURPOSES ONLY
1. INSURED’S NAME 2. CONTRACT NUMBER 3. UNIT NUMBER
FCIC-25361
4. CROP YEAR
APPRAISAL WORKSHEET
Potatoes
FIELD ID 5 ACREAGE IN FIELD 6 ROW SPACE 7
I. M. INSURED
XXXXXXX
PART I - FROM EMERGENCE TO MATURE STAGE
TOTAL PLANTS ALL SAMPLES 10
00100
AVERAGE NUMBER PLANTS 12
YYYY
CWT. PER ACRE APPRAISAL 14
TYPE 8
EACH BLOCK EQUALS NUMBER PLANTS IN ONE SAMPLE 9
NUMBER SAMPLES 11
FACTOR 13
A
15.6
38
080
17
29
23
21
19
109
÷ ÷ ÷
5
= = =
21.8
x x x
1.50
= = =
32.7
PART II - WEIGHT METHOD
FIELD ID 15 ACREAGE IN FIELD 16 ROW SPACE 17 NUMBER OF PLANTS AND WEIGHT OF MATURE POTATOES EACH BLOCK (/1/ AND /2/) EQUALS ONE SAMPLE 18 TOTAL POUNDS (LINE /2/) 19 NUMBER SAMPLES 20 AVG. LBS. PER SAMPLE 21 CONV. FACTOR TO CWT. 22 CWT. PER ACRE APPRAISAL 23
B
3.1
38 095
NO. PLANTS PER SAMPLE
1
2
3
3 3
=
TOTAL 2 WGT. POTATOES PER SAMPLE
2.6
x
10
=
26.0
1.7
3.2
2.8
7.7
÷
Item 13 factor: APH 412 ÷ 138 (38" rows) X 0.500 (6" plant spacing = 1.50.
24. SIGNATURE OF ADJUSTER & CODE NUMBER
DATE
25. SIGNATURE OF INSURED
DATE
I. M. ADJUSTER, 123XX
MM/DD/YYYY
I. R. INSURED
MM/DD/YYYY
43
FCIC-25361
MAY 1998
(RESERVED)
44
MAY 1998 16 APPRAISAL CALCULATION STANDARDS
FCIC-25361
See section 15, Appraisal Worksheet Entries and Completion Standards for worksheet entries, appraisal calculations, and rounding rules. 17 APPRAISAL MODIFICATIONS AND DEVIATION STANDARDS There are no pre-established modifications or deviations in this handbook. See the LAM for additional information. 18 19 (RESERVED) (RESERVED)
45
FCIC-25361
MAY 1998
(RESERVED)
46
MAY 1998 PART 3 POTATO CLAIMS 20 CLAIM FORM ENTRIES AND COMPLETION STANDARDS
FCIC-25361
Generic Standard Item identifier has been assigned to each required item. Insurance providers are to ensure that their claim form provides the same information consistent with the FCIC standards. Insurance providers may provide separate columns, items, or entries for information which, by necessity, has been consolidated into a single column, item, or entry in this standard. Any difference in arrangement of insurance providers’ items or information is considered cosmetic and not substantive unless it adversely affects the calculations, or the legality or availability of the FCIC required information. A Instructions (1) The claim form, (hereafter referred to as a “Production Worksheet”) is a progressive form containing all notices of damage for all preliminary and final inspections made on a unit. If a Production Worksheet has been prepared on a prior inspection, verify each entry and enter additional information as needed. If a change or correction is necessary, strike out all entries on the line and re-enter correct entries on a new line. The adjuster and insured should initial any line deletions. Refer to the LAM for instructions regarding the following: (a) (b) (c) (d) (e) Acreage report errors. Delayed notices or delayed claims. Corrected claims or fire losses (double coverage) and cases involving concealment, misrepresentation, or litigation. Claims involving a Certification Form (when all the acreage on the unit has been appraised to be put to another use). “No Indemnity Due" claims (which must be verified by an APPRAISAL or NOTIFICATION from the insured that the production exceeded the guarantee).
(2)
(3)
(4)
The adjuster is responsible for determining if any of the insured's requirements under the notice and claim provisions of the policy have not been met. If any have not, the adjuster should contact the insurance provider. Instructions labeled "P" apply to preliminary inspections only. Instructions labeled "F" apply to final inspections only.
(5) (6)
47
FCIC-25361 (7) B Instructions not labeled apply to ALL inspections.
MAY 1998
Labeled and Non-labeled Items (1) Items labeled PRODUCTION apply to inspections involving potatoes planted for harvest as seed OR for human consumption that are insured under the Northern Potato Crop Provisions, the Potato Quality Endorsement, the Processing Potato Quality Endorsement, or the Storage Endorsement. Items labeled CERTIFICATION apply only to inspections involving seed-potato acreage for which certification of the harvested potatoes is guaranteed under the provisions of the Certified Seed Potato Endorsement. Item numbers not labeled apply to inspections of "Production," and "Certification" (guarantee) inspections.
(2)
(3) C
Heading Information
Verify or make the following entries: Standard Items 1 2 3 4 Crop/Code Unit Legal Description Date of Damage Information Required “Potatoes” (0084). Five-digit unit number from the acreage report after it is verified to be correct. (e.g. 00100) Section, township, and range numbers or other legal description that identifies the location of the unit. Enter the first three letters of the month during which MOST of the insured damage (including progressive damage) occurred for each inspection. Include the SPECIFIC DATE where applicable as in the case of hail damage (e.g., JUN 11). Enter the insured cause of loss. Refer to the LAM for causes of loss and applicable codes. If it is evident that no indemnity is due, enter “NONE.” If an insured cause of loss is coded as “Other,” explain in the narrative. NOTE: See the Basic Provisions and the Northern Potato Crop Provisions for information pertaining to insured and uninsured causes of loss.
5
Cause of Damage
48
MAY 1998 6 Primary Cause Percent P F MAKE NO ENTRY.
FCIC-25361
Enter the whole percent of primary cause of damage (primary cause of damage must exceed 50 percent). Enter an “X” in the major secondary cause of damage. Company name and agency name.
7
Company Name/Agency Name Name of Insured Claim Number Policy Number Crop Year Additional Units P F
8 9 10 11 12
Name of the insured that identifies exactly the person (legal entity) to whom the policy is issued. Enter the claim number as assigned by the insurance provider. Insured’s assigned policy number. Crop year for which the claim is filed, as defined in the policy. MAKE NO ENTRY. Enter the unit number(s) for ALL non-loss units for the crop at the time of final inspection. A non-loss unit is any unit for which a Production Worksheet has not been completed. Additional non-loss units may be entered on a single Production Worksheet. NOTE: If more spaces are needed for non-loss units, enter the unit numbers, identified as “non-loss units”, in the narrative or on an attached Special Report.
13
Estimated Production per Acre
P F
MAKE NO ENTRY. Enter the estimated yield per acre, in whole hundredweight, of all non-loss units for the crop at the time of final inspection. a b Enter the date the notice of damage was given for the unit in item 2. A third preliminary inspection (if needed) requires an additional set of Production Worksheets. Enter the date of notice for a third preliminary inspection in the 1st space of item 14 on the second set. Reserve the “Final” space on the first page of the first set of Production Worksheets for the date of notice for the final inspection. 49
14
Date(s) of Notice
P
c
FCIC-25361 d
MAY 1998 If the inspection is initiated by the insurance provider, enter “Company Insp.” instead of the date.
F
Adjusters: Transfer the last date in the 1st or 2nd space to the FINAL space if a final inspection should be made as a result of the notice. Always enter the complete date of notice (month, day, year) for the "FINAL" inspection in the FINAL space on the first page of the first set of Production Worksheets. For a delayed notice of loss or delayed claim, refer to the LAM. If the date of notice is later than the time specified in the policy provisions, refer to the LAM.
15
Companion Policies
a
If no OTHER person has a share in the unit (insured has 100 percent share), MAKE NO ENTRY. In all cases where the insured has LESS than a 100 percent share of a loss-affected unit, ask the insured if the OTHER person sharing in the unit has a multiple-peril contract (i.e., not crophail, fire, etc.). If the other person does not, enter “NONE.” (1) If the other person has a multiple-peril contract and it can be determined that the SAME insurance provider services it, enter the contract number. Handle these companion policies according to insurance provider instructions. If the OTHER person has a multiple-peril contract and a DIFFERENT insurance provider or agent services it, enter the name of the insurance provider and/or agent (and contact number) if known. If unable to verify the existence of a companion contract, enter “Unknown” and contact the insurance provider for further instructions.
b
(2)
(3)
NOTE: Refer to the LAM for further information regarding companion contracts.
50
MAY 1998
FCIC-25361
SECTION I - ACREAGE APPRAISED, PRODUCTION AND ADJUSTMENTS Make separate line entries for varying: (1) (2) (3) (4) (5) (6) (7) Rate classes, types, or practices; APH yields; Appraisals; Adjustments to appraised mature production (quality adjustment factors); Stages or intended use(s) of acreage; Shares (e.g., 50 percent and 75 percent shares on the same unit); or Appraisals for damage due to hail or fire if the Hail and Fire Exclusion is in effect.
Verify or make the following entries: Standard Items A Field ID Information Required PRODUCTION: The field identification symbol from a sketch map or aerial photo. See the narrative. In the margin (or in a separate column), enter the date of inspection for the last line entry of each inspection. CERTIFICATION: The field identification symbol from a sketch map or an aerial photo. See the narrative. In the margin (or in a separate column), enter the date of inspection for the last line entry of each field inspection IF INSPECTED. If not inspected (claim based on state certification records), enter the final date for the claim. B Preliminary Acres P The number of acres, to tenths, (include “E” if estimated), for which consent for other use has been given. Determine actual acreage, to tenths, when the boundaries of the appraised acreage may not be determined later. MAKE NO ENTRY. Refer to the LAM for definition of acceptable determined acres used herein. Determined acres to tenths for acreage: a b Put to other use without prior consent. Abandoned; or 51
F C Final Acres
FCIC-25361 c F Damaged by uninsured causes.
MAY 1998
Determined acres to tenths. NOTE: Acreage breakdowns WITHIN a unit may be estimated (enter “E” in front of the acres) if a determination is impractical AND if authorization was received from the insurance provider. Document authorization in the narrative. ACCOUNT FOR ALL ACREAGE IN THE UNIT. In the event of over-reported acres, handle in accordance with individual company policy. In the event of underreported acres, draw a diagonal line in Column “C” as shown. C1 C2 Enter the ACTUAL acres for the field or subfield. Enter the REPORTED acres for the field or subfield.
D
Interest or Share
Insured’s interest in crop to three decimal places as determined at the time of inspection. If shares vary on the same UNIT, use separate line entries. The correct rate class from the actuarial documents. Verify with the acreage report and if the rate class is found to be incorrect, prepare a revised acreage report according to the insurance providers instructions. NOTE: Unrated land is uninsurable without a written agreement. PRODUCTION: Practice, entered as a 3-digit code number, exactly as specified on the actuarial documents, for the practice carried out by the insured. If “No Practice Specified,” enter appropriate 3-digit code number from the actuarial documents. CERTIFICATION: MAKE NO ENTRY.
E
Risk
.
F
Practice
G
Type Class
Type, entered as a 3-digit code number exactly as shown on the actuarial documents, for the type grown by the insured. If “No Type Specified,” enter appropriate 3-digit code number from the actuarial documents.
52
MAY 1998 H Stage P F MAKE NO ENTRY. Stage abbreviation as shown below. PRODUCTION: STAGE "P" EXPLANATION
FCIC-25361
Acreage abandoned without consent, damaged solely by uninsured cause(s), put to other use or vines thereon destroyed without consent, or for which the insured failed to provide records of production which are acceptable to the insurance provider. Harvested. Unharvested or put to other use or vines thereon destroyed with consent.
"H" "UH"
NOTE: If production from any acreage of the insured crop is NOT harvested, the price used to determine the indemnity will be 80 percent of the insured’s price election. PREVENTED PLANTING: See the LAM for proper codes for any eligible prevented planting acreage. CERTIFICATION: STAGE “P” EXPLANATION Acreage abandoned without consent, damaged solely by uninsured cause(s), put to other use or vines thereon destroyed without consent, or for which the insured failed to provide records of production which are acceptable to the insurance provider. Certified. Not certified due to insured causes.
“C” “NC”
53
FCIC-25361 I Intended or Final Use
MAY 1998 Use of acreage. Use the following “Intended Use” abbreviations. PRODUCTION: USE "To soybeans," “plowed”, etc. "WOC" "SU" "ABA" "H" "UH" EXPLANATION Use made of the acreage Without Consent Solely uninsured Abandoned without consent Harvested Unharvested
PREVENTED PLANTING: See the LAM for proper codes for any eligible prevented planting acreage. CERTIFICATION: USE "To “peas," “plowed”, etc. "WOC" "SU" EXPLANATION Use made of the acreage Without Consent Solely uninsured acreage or uninsured cause(s) of noncertification. Abandoned without consent Harvested Insured cause(s)
"ABA" "H" ”Leafroll,"etc.
Verify any “Intended Use” entry. If the final use of the acreage was not as indicated, strike out the original line and initial it. Enter all data on a new line showing the correct “Final Use.”
54
MAY 1998 J Appraised Potential PRODUCTION:
FCIC-25361
Per-acre appraisal in hundredweight, to tenths, of POTENTIAL production for the acreage. (See appraisal methods for additional instructions). NOTE: If there is no potential on unharvested acreage or if appraised unharvested potatoes could not be sold and were discarded, enter “0” a From emergence to maturity - Enter the appraisal per acre from item 14 of the appraisal worksheet. After maturity - Enter the total production per acre of ALL harvestable size potatoes regardless of damage (including potatoes with heat necrosis, rot, freeze, or other damage specified by FCIC) from item 23 of the appraisal worksheet.
b
CERTIFICATION: MAKE NO ENTRY. K1- K2 L Shell and/or Quality Factor MAKE NO ENTRY. From emergence to maturity. MAKE NO ENTRY. After maturity, proceed according to the following as applicable. PRODUCTION: a Enter the 3-digit factor determined after calculating the percent of damage for the qualifying production and applying such percentage to the Tuber Rot Table (section 14E) or the Freeze Damage Table (section 14F). Enter the applicable 3-digit factor if the damage is due to a combination of tuber rot and freeze, determine the percent of damage and apply such percentage to the appropriate tables. Refer to section 14 for information on calculating the combination factor. Enter the applicable 3-digit factor if the damage is due to internal or external defects and the Quality Endorsement(s) is in effect. Refer to section 14 for information on calculating the factor.
b
c
55
FCIC-25361 d
MAY 1998 Document in the narrative the percent of damaged determined.
CERTIFICATION: MAKE NO ENTRY. M Uninsured Causes EXPLAIN IN THE NARRATIVE or if more space is needed attach a Special Report. PRODUCTION: a Hail and Fire Exclusion NOT in effect. (1) Enter NOT LESS than the insured’s production guarantee per acre in hundredweight, to tenths, for the line, (calculated by multiplying the elected coverage level percentage times the approved APH yield per acre shown on the APH form) for any acreage: (a) (b) (c) abandoned without consent; put to other use without consent; damaged SOLELY by uninsured causes; or NOTE: On preliminary inspections, advise the insured to keep the harvested production from any acreage damaged SOLELY by uninsured causes separate from other production. (d) for which the insured failed to provide acceptable records of production.
NOTE: When there is late-planted acreage, the applicable per-acre production guarantee for such acreage is the production guarantee that has been reduced for late-planted acreage. (2) For acreage that is damaged PARTLY by uninsured causes, enter the APPRAISED UNINSURED loss of production per acre in hundredweight, to tenths, for such acreage.
b
Refer to the LAM when a Hail and Fire Exclusion is in effect and damage is from hail or fire. 56
MAY 1998 c
FCIC-25361 Enter the result of adding uninsured cause appraisals to hail and fire exclusion appraisals.
NOTE: For fire losses, if the insured also has other fire insurance (double coverage), refer to the LAM. CERTIFICATION: Enter the per-acre guarantee from the insured’s policy for all acreage which is certified. Make no entry for acreage which fails certification. N Adjusted Potential Total to Count Per Acre Total Total Acres P F 17 Totals P F Narrative: If more space is needed, document on a Special Report, and enter “See Special Report.” Attach the Special Report to the Production Worksheet. a b Enter "No acreage released," adjuster initials, and date if no acreage is released on the unit. If notice of damage was given and "No Inspection" is necessary, enter the unit number(s), "No Inspection," date, and adjuster’s initials. The insured's signature is not required. Explain any uninsured causes, unusual, or controversial cases. Column “J” (appraised potential) plus Column “M” (uninsured cause) in hundredweight to tenths. Column “C or C1” (actual acres) times Column “N” (in hundredweight to tenths). Per Acre Guarantee - Enter the per-acre production guarantee per acre from the insured’s policy. Column “C2" (reported acres) times Column “P” (“C” if acreage is not under-reported). MAKE NO ENTRY. Total Actual Acres (Column “C” or [“C1” if there are under reported acres]), to tenths. MAKE NO ENTRY. Totals of Column “O” and Column “Q.”
O P Q 16
c
57
FCIC-25361 d
MAY 1998
Under “PRODUCTION” guarantee only: If there is an appraisal in Section I, item M for uninsured causes due to a Hail and Fire Exclusion, show the original hail/fire liability per acre and the hail/fire indemnity per acre. State that there is "No other fire insurance" when fire damages or destroys the insured potato crop and it is determined that the insured has no other fire insurance. Also, refer to the LAM. Explain any errors found on the acreage report. Under PRODUCTION guarantee only: (1) Explain any commingled production. Refer to the LAM. Attach a Special Report showing the computations used to prorate commingled production, if applicable, when unit is covered under the Storage Coverage Endorsement. Explain any entry for "Production Not to Count" and/or any production not included in Section II, item I or item B - E entries.
e
f g
(2) h I
Explain a "NO" checked in item 19. Attach a sketch map or aerial photograph to identify the total unit: (1) (2) (3) If consent is or has been given to put part of the unit to another use; If uninsured causes are present; or For unusual or controversial cases.
NOTE: Indicate on the aerial photo or sketch map, the disposition of acreage destroyed or put to other use with or without consent. j Explain any difference between inspection and signature dates. For an ABSENTEE insured, enter the date of the inspection AND the date of mailing the form for signature. Enter the code number of any other adjuster or supervisor and date of inspection in the lower right corner of this space when he/she accompanied the adjuster on the inspection. Explain the reason for a "No Indemnity Due" claim. “No Indemnity Due” claims are to be distributed in accordance with the insurance provider’s instructions. Explain any delayed notices or delayed claims as instructed in the LAM. Document any authorized estimated acres shown In Section I, item C as follows: "Line 3 'E' acres authorized by insurance provider MM/DD/YYYY." Document the method and calculation used to determine acres for the unit. Refer to the LAM.
k
l m n o
58
MAY 1998 p q r s t
FCIC-25361
Document any other pertinent information, including any data to support any factors used to calculate the production. Specify the type of insects or disease when the insured cause of damage or loss is listed as insects or disease. Explain why any control measures did not work. Under “CERTIFICATION” guarantee only: Include a cross-reference to the OTHER unit number for the SAME acreage under the production guarantee. Document the percent of damage due to tuber rot, freeze or other quality deficiencies. Explain any allowed transportation costs. Document and show the calculations for any increased harvested production due to early digging of potatoes not fully mature. SECTION II - HARVESTED PRODUCTION
General Information: (1) Account for ALL HARVESTED PRODUCTION (for ALL ENTITIES sharing in the crop) except production appraised BEFORE harvest and shown in Section I because the quantity cannot be determined later. The percentage of harvested potatoes to count for stored or marketed potatoes, shall be the percentage as determined by a Federal/State inspection or by an insurance provider inspection. If additional lines are necessary, the data may be entered on a continuation sheet. USE SEPARATE LINES FOR: (a) (b) (c) (d) (e) (f) (g) Separate storage facilities. Varying determinations of production (market value, factors). Varying names and addresses of buyers or sold production. Varying shares; e.g., 50 percent and 75 percent shares on the same unit. Separate processors. Different varieties and types. Potatoes harvested prior to full maturity (early harvest) for which production is increased by applicable percentage. Refer to section 11C.
(2)
(3)
(4)
Columns “B” through “E” are for structure measurement entries (Rectangular, Round, Square, etc.). If structures are a combination of shapes, break into a series of average measurements, if possible. Enter “Odd Shape” or “Conical Pile” if production is stored in an odd shaped structure or conical pile. 59
FCIC-25361
MAY 1998 Document measurements on a Special Report or other FCIC-approved worksheet used for this purpose.
(5)
If farm-stored production has been weighed prior to storage and acceptable weight tickets are available showing gross weights, enter “Weighed and Stored on Farm” in columns “B” through “E”. See LAM for acceptable weight tickets. For production commercially stored, sold, etc., make entries in items “B” through “E” as follows: (a) (b) Name and address of facility or buyer. “Seed,” “Fed,” etc.
(6)
(7) (8) (9)
For acreage insured under the Certified Seed Potato Endorsement, MAKE NO ENTRY in Section II of a “certified seed claim.” There will generally be no harvested production entries in items A through S for preliminary inspections. If there is harvested production from more than one insured practice (or type) and a separate approved APH yield has been established for each, the harvested production also must be entered on separate lines in items A through S by type or practice. If production has been commingled, refer to the LAM or the Storage Coveage Endorsement, if applicable. If a correction is necessary in items A through S, strike out all entries on the line. The insured and the adjuster should then initial the line deletion in the margin beside A. Make corrected entries on a new line.
(10)
Verify or make the following entries: Standard Items 18 Date Harvest Completed Information Required P F MAKE NO ENTRY. PRODUCTION: a Enter the date the ENTIRE acreage on the unit was either: (1) (2) b totally destroyed, or a combination of destroyed, put to other use, or harvested.
Enter the date from the Certification Form, if the case involves a Certification Form, when the entire unit is put to another use, etc. Refer to the LAM. 60
MAY 1998 c
FCIC-25361 Enter “Incomplete” if, at the time of final inspection, there is any insured acreage which is unharvested and could still be harvested. Enter “No Harvest” if none of the acreage was harvested nor will be harvested.
d
CERTIFICATION: Enter the date the insured received the results of the last inspection (including the Florida winter test reading) for ALL of the acreage on the unit. Enter “Incomplete” if, at the time of receipt of the final inspection results and/or certification, there is any existing acreage which is unharvested. If none of the acreage was harvested, nor will be harvested, enter “No Harvest.” P 19 Similar Damage MAKE NO ENTRY. Check “Yes” or “No.” Check “Yes” if amount and cause of damage due to insurable causes is similar to the experience of other farms in the area. If “No” is checked, explain in the narrative. Check “YES” only if an assignment of a potato indemnity is in effect for the crop year; otherwise check “No.” Refer to the LAM. Check “YES” only if a transfer of right to a potato indemnity is in effect for the unit for the crop year; otherwise, check “No.” Refer to the LAM. ENTER ONLY VARYING SHARES on SAME unit to three decimal places. If only one practice and/or type of harvested potato production is listed in Section I, MAKE NO ENTRY. If more than one practice and/or type of harvested potato production is listed in Section I, and a separate approved APH yield exists, indicate for each practice/type the corresponding Field ID (from Section I, item “A”). B Length or Diameter Internal measurement in feet to tenths of structural space occupied by the potatoes. a b Length if rectangular or square. Diameter if round. Refer to the LAM to convert circumference to diameter if internal diameter measurement is not possible. 61
20
Assignment of Indemnity Transfer of Right to Indemnity Share Field ID
21
A1 A2
FCIC-25361 C Width
MAY 1998 Internal width measurement in feet, to tenths, of space occupied by potatoes in the structure if rectangular or square. If round, enter “RND”. Depth measurement in feet to tenths of space occupied by potatoes in rectangular, round, or square structures. If there is production in the storage structure from other units or sources, refer to the LAM. Cubic feet, to tenths, of space displaced by chutes, vents, studs, crossties, etc. Refer to the LAM for computation instructions. Net cubic feet of potatoes in the storage structure. Refer to the LAM for computation instructions. Enter Conversion Factor as 0.4167. NOTE: For production lost due to harvest prior to full maturity, the production to count must be increased. Refer to section 11C. Multiply Column “F” times Column “G” (in hundredweight to tenths). Eliminate any dirt weight only if documentation can be provided to establish the amount of dirt in the stored production.
D
Depth
E
Deduction
F G H
Net Cubic Feet Conversion Factor Gross Production
I
Bu., Ton, Lbs., Cwt
PRODUCTION: NOTE: For production lost due to harvest prior to full maturity, the production to count must be increased. Refer to section 11C. Production in hundredweight, to tenths. ALL harvested production regardless of damage or grade defects: a b Weighed and stored on the farm; Sold - Obtain gross production for the UNIT from the summary and/or settlement sheets. (Individual load slips only WILL NOT suffice unless the storage facility or buyer WILL NOT provide summary and/or settlement sheets to the insured and this is documented in the narrative). Stored in odd-shaped structures, conical piles, or a cone on the top or bottom of the structure. The adjuster must compute the amount of gross production. (Refer to the LAM for cubic footage and production computations). A copy of ALL 62
c
MAY 1998
FCIC-25361 production calculations must be left in the file folder. d Enter the production to count for early harvest. Show all computations in the narrative or a Special Report. If there are multiple days, compute each day accordingly, add the results of each days calcualtion together. Enter total production to count for early harvest.
CERTIFICATION: MAKE NO ENTRY. J K1-M2 N Adjusted Production Shell/Sugar Factor MAKE NO ENTRY. MAKE NO ENTRY. Adjusted Production: Enter production from item “H or I” in hundredweight to tenths. No adjustments have been made to production at this point EXCEPT for increased production due to harvest prior to full maturity. Net production NOT to count, in hundredweight to tenths, WHEN ACCEPTABLE RECORDS IDENTIFYING SUCH PRODUCTION ARE AVAILABLE, from harvested acreage which has been assessed an appraisal of not less than the guarantee per acre, or from other sources (e.g., other units or uninsured acreage) in the same storage structure (if the storage entries include such production). THIS ENTRY MUST NEVER EXCEED PRODUCTION SHOWN ON THE SAME LINE. EXPLAIN THE TOTAL STRUCTURE CONTENTS (storage facility, depth, etc.) ANY “PRODUCTION NOT TO COUNT" IN THE NARRATIVE. NOTE: Make no entry if ONLY the depth for production to count has been entered in Column “D”, and the depth for production NOT to count has been entered in the narrative. Refer to example in the LAM. P Production Result of subtracting the entry in Column “O” from Column “N” to tenths.
O
Production Not to Count
63
FCIC-25361 Q1 Value PRODUCTION:
MAY 1998
Enter the agreed upon sales price (price received or could have been received) in dollar and cents for damaged potatoes. Refer to section 14 for instructions on determining value. Document in the narrative the percent of damage and cause. CERTIFICATION: MAKE NO ENTRY. Q2 Market Value PRODUCTION: Enter the highest available price election in dollar and cents. Refer to section 14 for instructions. Document in the narrative the percent of damage and cause. CERTIFICATION: MAKE NO ENTRY. R Quality Factor PRODUCTION: Enter the appropriate factor (three decimal places) determined as outlined in section 14. Document the percent of damage and cause in the narrative. CERTIFICATION: MAKE NO ENTRY. S 22 23 24 25 Production to Count Section II Total Section I Total Unit Total Adjuster’s Signature, Code Number and Date F F F Enter result from multiplying Column “P” times Column “R” in hundredweight to tenths. Total of Column “S,” to tenths. Enter figure from Section I, Column “O” total. Total of 22 and 23, to tenths. Signature of adjuster, code number, and date signed after the insured (or insured’s authorized representative) has signed. For an absentee insured, enter adjuster’s code number ONLY. The signature and date will be entered AFTER the absentee has signed and returned the Production Worksheet. NOTE: Final inspection should be signed on bottom line. 26 Insured’s Signature and Date Insured’s (or insured’s authorized representative’s) signature and date. BEFORE obtaining insured’s signature, REVIEW ALL ENTRIES on the Production Worksheet WITH THE INSURED, particularly explaining codes, etc., that may not be readily understood.
64
MAY 1998
FCIC-25361 NOTE: Final inspection should be signed on bottom line.
27
Page Numbers
P F
Page numbers - “1", “2", etc., at the time of inspection. Page numbers - (Example: Page 1 of 1, Page 1 of 2, Page 2 of 2, etc.).
65
FCIC-25361
MAY 1998
(RESERVED)
66
MAY 1998
PRODUCTION WORKSHEET
1 Crop/Code 2 Unit 3 Legal Description
FCIC-25361
(FOR ILLUSTRATION PURPOSES ONLY)
SEP EX MOIST 70
7 Company Agency
8 Name of Insured
Potatoes 0084
4 Date of Damage 5 Cause of Damage 6 Primary Cause % 12 Additional Units 13 Est. Prod Per Acre
00100 JUN 11 FREEZE 00200 150
S12-12N-12W
9 Claim Number
I. M. Insured
11 Crop Year
JUL EX MOIST
Any Company Any Agency
10 14 Date(s)
XXXXXXXX XXXXXXX Policy Number
1st 2nd
YYYY
Final
Notice of 6-01-YYYY 7-05-YYYY 15 Companion
POTENTIAL YIELD
9-5-YYYY
SECTION I - ACREAGE APPRAISED, PRODUCTION AND ADJUSTMENTS
ACTUARIAL
A Field ID B Prelim Acres C Final Acres D Interest or Share E Risk F Practice G Type Class H Stage I Intended or Final Use
STAGE GUARANTEE
L Shell and/or Quality Factor M Uninsured Cause N Adjusted Potential O Total To Count (C x N) P Per Acre Q Total (C x P)
J Appraised Potential
K1 K2 Moisture % Factor
A C B D E
E15.0 E9.0 E3.0
15.6 10.1 3.1 12.5 21.5
1.000 1.000 1.000 1.000 1.000
R03 R03 R03 R03 R03
003 003 003 003 003
080 095 095 095 080
UH P UH H H
TO S.BEAN PLOW WOC UH H H
32.7 89.0 26.0 .500
32.7 89.0 13.0
510.1 898.9 40.3
89.0 89.0 89.0 89.0 89.0
1388.4 898.9 275.9 1112.5 1913.5
16 TOTAL
62.8
17 TOTALS
1449.3
5589.2
NARRATIVE (If more space is needed, attach a Special Report)
SECTION I, Field B; 14% freeze damage.
Field C destroyed without consent. Section II: Line 1, potatoes stored without grade determination.
Line 2, 65% grade U.S. No.2 or better with 80% historical average (.65÷.80=.81) Line 4: 12% freeze damage results in .600 factor from table. Determined acres using MPCI acreage report - would measure within 5 percent.Line 3:harv. 1,000 CWT 5 days early.(2%x5=10%increase)1,000x10%=1100cwt PTC. SECTION II - HARVESTED PRODUCTION
18 Date Harvest Completed 19 Is damage similar to other farms in the area? Yes x No 20 Assignment of Yes No x K 1 K 2 FM % Factor L1 L2 Moisture % Factor M1 M2 Test WT Factor N Adjusted Production
(HorI)xJxK2xL2xM2
9-05-YYYY
MEASUREMENTS
A1 A2 Share Field B Length or Diameter C D E Dedu ction F
21 Transfer of Right To Indemnity? Yes No x O Prod. Not to Count P Production (N - O) Q1 Q2 Value Mkt. Price R Quality Factor (Q1 ÷ Q2) S Production to Count (P x R)
GROSS PRODUCTION
G Conversion Factor H Gross Prod. (F x G) I Bu. Ton Lbs. CWT
ADJUSTMENTS TO HARVESTED PRODUCTION
J Shell/ Sugar Factor
Width Depth
Net Cubic Feet
9.0 16.0
5.0 4.0 12.5 8.0
180.0
.4167 75.0
75.0 666.7 1100.0 336.9 1100.0 336.9
75.0 666.7 1100.0 336.9 .600
22 Section
75.0 .810 540.0 1100.0 202.1
1600.0 .4167 666.7
XYZ POTATO CO. A TOWN, USA ABC POTATO CO. ANY TOWN, U.S.A -
I certify the information provided above, to the best of my knowledge, to be true and complete and that it will be used to determine my loss, if any, to my insured crops. I understand that this Production Worksheet and supporting papers are subject to audit and approval by the company. I understand that this crop insurance is subsidized and reinsured by the Federal Crop Insurance Corporation, an agency of the United States. False claims or false statements made on a matter within the jurisdiction of the Federal Crop Insurance Corporation may be subject to criminal and and civil penalties under various Federal statutes including provisions of 18 U.S.C. §§ 1006 and 1014; 7 U.S.C. § 1506; 31 U.S.C. §§ 3729, 3801, 3812.
II
1917.1
23 Section I Total 24 Unit Total
1449.3 3366.4
67
FCIC-25361
25 Adjuster’s Signature and Code Number Final Inspection Date 26 Insured’s Signature Final Inspection Date
MAY 1998
I. R. ADJUSTER, 12351 MMDDYYYY I. M. INSURED MMDDYYYY 1
1
of
(RESERVED)
68
MAY 1998 CERTIFIED SEED EXAMPLE
1 Crop/Code 2 Unit 3 Legal Description
FCIC-25361 PRODUCTION WORKSHEET
S13-12N-12W AUG DISEASE 100
Potatoes 0084
4 Date of Damage 5 Cause of Damage 6 Primary Cause % 12 Additional Units 13 Est. Prod Per Acre
00100
(FOR ILLUSTRATION PURPOSES ONLY)
7 Company
8 Name of Insured
I.M. Insured
9 Claim Number 11 Crop Year
Agency
Any Company Any Agency
10 14 Date(s)
XXXXXXXX Policy Number XXXXXXX
1st 2nd
YYYY
Final
Notice of Loss
9-28-YYYY
9-28-YYYY
15 Companion Policy(s)
SECTION I - ACREAGE APPRAISED, PRODUCTION AND ADJUSTMENTS
ACTUARIAL
A Field ID B Prelim Acres C Final Acres D Interest or Share E Risk F Practice G Type Class H Stage I Intended or Final Use
POTENTIAL YIELD
J
Appraised Potential
STAGE GUARANTEE
L Shell and/or Quality Factor M Uninsured Cause N Adjusted Potential O Total To Count (C x N) P Per Acre Q Total (C x P)
K1 K2 Moisture % Factor
B,D C
14.4 11.3
1.000 1.000
R03 R03
095 095
C NC
H H
89.0
89.0
1281.6
89.0 89.0
1281.6 1005.7
16 TOTAL
25.7
17 TOTALS
1281.6
2287.3
NARRATIVE (If more space is needed, attach a Special Report) FIELD C, 11.3 ACRES FAILED TO CERTIFY DUE TO POTATO LATE BLIGHT. Determined acres using MPCI acreage report - would measure within 5 percent.
SECTION II - HARVESTED PRODUCTION
18 Date Harvest Completed
MEASUREMENTS
A1 A2 Share Field ID B
09-27-YYYY
C D E Deduction
GROSS PRODUCTION
F Net Cubic Feet G Conversion Factor
19 Is damage similar to other farms in the Yes X No H Gross Prod. (F x G) I J
ADJUSTMENTS TO HARVESTED PRODUCTION
Shell/ K 1 K 2 FM % Factor L1 L2 Moisture Factor M1 M2 Test Factor N O
20 Assignment of Indemnity? Y No X
21 Transfer of Right To Indemnity? Yes No X P Production (N - O) Q1 Q2 Value Mkt. Price R
Quality Factor (Q1 ÷ Q2)
S
Production to Count (P x R)
Length Dept Width of h Diameter
Bu. Ton Lbs. CWT Sugar Factor
Adjusted Prod. Not Production (HorI)xJxK2xL2xM2 to Count
I certify the information provided above, to the best of my knowledge, to be true and complete and that it will be used to determine my loss, if any, to my insured crops. I understand that this Production Worksheet and supporting papers are subject to audit and approval by the company. I understand that this crop insurance is subsidized and reinsured by the Federal Crop Insurance Corporation, an agency of the United States. False claims or false statements made on a matter within the jurisdiction of the Federal Crop Insurance Corporation may subject the maker to criminal and civil penalties under various Federal statutes including the provisions of 18 U.S.C. §§ 1006 and 1014; 7 U.S.C.§ 1506; 31 U.S.C. §§ 3729, 3801, 3812.
22 Section II Total 23 Section I Total 24 Unit Total Date 27 Page
1281.6 1281.6
25 Adjuster’s Signature and Code Number 1st Inspection 2nd Inspection Final Inspection
Date
26 Insured’s Signature 1st Inspection 2nd Inspection
I.R. Adjuster 12345
MMDDYYYY
Final Inspection
I.M. Insured
MMDDYYYY
1
of
1
69
FCIC-25361
MAY 1998
(RESERVED)
70
MAY 1998
EXHIBIT 1 FLOW CHARTS FOR ALL NORTHERN POTATO COVERAGE COMBINATIONS
Type(s) of Damage: Tuber Rot Only; or Tuber Rot and Quality Deficiencies Covered Under Quality Endorsements
FCIC-25361
5.0% or Less Tuber Rot 5.1% or More Tuber Rot (Production not Discarded) ________________›___________________________ ___________________›__________________________________ › › › Adjust - 0.1% for each 0.1% - Use tuber rot chart Storage End. No Storage End. ________________________›_______________ _______›_________________ _______________›____________________ › › › › › › No Qual. End. Qual. End. Price agreed on No price agreed Price agreed on No price agreed STOP. _______________›_________ within 60 of EOI on within 60 days within 21 days of EOI on within 21 › › (Price rec’d ÷ of EOI.(Use tuber (Price rec’d ÷ days of EOI. Qualify for price Do not qualify highest price elect.) rot chart.) highest price elect.) STOP. (Use tuber rot chart). compare. * for price compare. STOP. ________________›_________ __________›__ Production not discarded Multiply factor › › › › ______________________›_________ (% grade** ÷ Hist.%) No Qual. End. Qual. End. No Qual. End. Qual. End. › › by production adjusted › › › › No Storage End. Storage End. for tuber rot. STOP. STOP. Multiply factor STOP. Multiply factor ________›_______________ ________›________________________ (% grade ** ÷ Hist. %) (% grade** › › › › by production adjusted ÷ Hist. %) Price agreed No price agreed Price agreed on No price agreed on for tuber rot. STOP. by on within 21 on within 21 within 60 days within 60 days EOI. production days of EOI days of EOI. of EOI Multiply factor adjusted (Price rec’d Multiply factor (Price rec’d ÷ (% grade** ÷ Hist. %) for tuber ÷ highest (% grade** ÷ highest price elect.). by production adjusted rot. STOP. price elect.). Hist. %)by This factor for tuber rot. This factor production multiplied by STOP. multiplied by adjusted for total production total protuber rot. is PTC. DO NOT duction is STOP. multiply this factor PTC. DO NOT by production multiply this adjusted for tuber rot. ** The combined weight of sampled potatoes that grade factor by STOP. U. S. #2 or better (U.S. #1, if applicable) and that are production damaged by tuber rot and freeze is divided by the total adjusted for sample weight to determine the percentage of production tuber rot. STOP. grading U. S. #2 (U.S. #1, if applicable.) * Internal defects not separable and in excess of grade tolerance or, if Processing Quality Endorsement is also in effect, low specific gravity or dark fry color.
71
FCIC-25361
EXHIBIT 1 FLOW CHARTS FOR ALL NORTHERN POTATO COVERAGE COMBINATIONS (continued)
Type(s) of Damage: Combination Freeze and Tuber Rot; or Combination Freeze, Tuber Rot and Quality Deficiencies Covered Under Quality Endorsements
MAY 1998
5.0% or Less Combination Tuber Rot and Freeze 5.1% or More Combination Tuber Rot and Freeze (Production Not Discarded) _____________›_____________________________ ____________________›___________________________ › › › Adjust - 0.1% for each 0.1% - Use either chart for factor Storage End. No Storage End. ________________________›_______________ _____________›__________ ________________›_______________ › › › › › › No Qual. End. Qual. End. Price agreed on No Price agreed Price agreed on No Price agreed STOP. _______________›_________ within 60 days on within 60 days within 21 days of on within 21days › › of EOI. (Price of EOI. (Use EOI. (Price rec’d ÷ of EOI. Use tuber Qualify for price Do not qualify rec’d ÷ highest tuber rot chart). highest price elect.). rot chart). compare. * for price compare. price elect.). › STOP. › Production not discarded Multiply factor STOP. Amt. of production Amt. of production _____________________›_________ (% grade** ÷ Hist.%) determined above determined above › › by production adjusted further adjusted in further adjusted No Storage End. Storage End. for tuber rot. STOP. accordance with in accordance with ______›__________________ ________›________________________ freeze chart. freeze chart. › › › › (Freeze % = Wt. (Freeze % = Wt. Price agreed No price agreed Price agreed on No price agreed on of potatoes with of potatoes with on within 21 on within 21 within 60 days within 60 days EOI. freeze damage only freeze damage only days of EOI days of EOI. of EOI Multiply factor ÷ by total wt. of ÷ by total wt. of (Price rec’d Multiply factor (Price rec’d ÷ (% grade** ÷ Hist. %) sample.) sample.) highest (% grade** ÷ highest price elect.). by production adjusted › › price elect.). Hist. %) by This factor for tuber rot and freeze. ____________________________________________________________ This factor production multiplied by STOP. › › multiplied by adjusted for total production No Qual. End. Qual. End. total pro- tuber rot is PTC. DO NOT › › duction is and freeze. multiply this factor STOP. Multiply factor PTC. DO NOT STOP. by production (% grade** ÷ multiply this adjusted for tuber rot Hist. %) by factor by and freeze. amount of production STOP. production adjusted for determined tuber rot and freeze. above. STOP. *Internal defects not separable and in excess of grade tolerance or, if Processing Quality Endorsement is also in effect, low specific gravity or dark fry color. **The combined weight of sampled potatoes that grade U.S. #2 or better (U.S. #1, if applicable) and that are damaged by tuber rot and freeze is divided by the total sample weight to determine the percentage of production grading U. S. #2 (U. S. #1, if applicable.)
72
MAY 1998
EXHIBIT 1
FCIC-25361
FLOW CHARTS FOR ALL NORTHERN POTATO COVERAGE COMBINATIONS (continued)
Type(s) of Damage: Freeze Only; or Freeze and Quality Deficiencies Covered Under Quality Endorsements
Use freeze chart. (If in excess of 17.9% and production is not discarded within 21 days of end of insurance period, count 15% of such damaged production). ________________________›_______________ › › No Qual. End. Qual. End. STOP. _______________›_________ › › Qualify for price Do not qualify compare. * for price compare. Production not discarded Multiply factor ______________________›_________ (% grade** ÷ Hist.%) › › by production adjusted No Storage End. Storage End. for freeze. STOP. _______›________________ ________›_______________________ › › › › Price agreed No price agreed Price agreed on No price agreed on on within 21 on within 21 within 60 days within 60 days EOI. days of EOI. days of EOI. of EOI. Multiply factor (Price rec’d Multiply factor (Price rec’d ÷ (% grade** ÷ Hist. %) ÷ highest (% grade** ÷ highest price elect). by production adjusted price elect). Hist. %) by This factor for freeze. This factor production multiplied by STOP. multiplied by adjusted for total production total pro- freeze. is PTC. DO NOT duction is STOP. multiply this factor PTC. DO NOT by production multiply this adjusted for freeze. factor by STOP. production adjusted for freeze. STOP.
*Internal defects not separable and in excess of grade tolerance or, if Processing Quality Endorsement is also in effect, low specific gravity or dark fry color.
**The combined weight of sampled potatoes that grade U.S. #2 or better (U.S. #1, if applicable) and that are damaged by tuber rot and freeze is divided by the total sample weight to determine the percentage of production grading U.S. #2 (U.S. #1, if applicable).
73
FCIC-25361
EXHIBIT 1
MAY 1998
(RESERVED)
74